Stock Market – “The markets don’t worry me,” Bessent declared. “The markets will perform well in the long run if we implement sound tax policy, deregulation, and energy security.”
Washington : In response to President Donald Trump’s tariff threats, the stock market has dropped several times, but Treasury Secretary Scott Bessent stated on Sunday that he was “not at all” concerned about the market.
“After thirty-five years in the investment industry, I can tell you that corrections are healthy. They’re typical. “It’s just plain unhealthy,” Bessent stated in an interview on NBC News’ “Meet the Press.”
In response to Trump’s tariff threats, major market indexes have declined in recent weeks. The value of the S&P 500 has dropped by over $5 trillion in just three weeks, according to a prior report from CNBC.
Trump has threatened high tariffs on other U.S. friends including the European Union, but he has been hesitant to impose taxes on Canada and Mexico, two of the country’s major partners. The Trump has imposed broad tariffs on steel and aluminum as well.
Trump’s “reciprocal” tariffs on other nations will go into effect on April 2, Bessent further stated.
It’s not the markets that worry me. Bessent stated that the markets will perform well in the long run provided we implement sound tax policy, deregulation, and energy security.
In his interview on Sunday, Bessent did not rule out a recession, raising concerns about longer-term economic problems in the wake of stock market swings.
It is understood that there are no certainties, as evidenced by the unforeseen emergence of Covid, correct?
When asked if he could ensure there wouldn’t be a recession, Bessent responded.
He stated that the nation needed to wean itself off of “massive government spending.” “So I can predict that we are putting in robust policies that will be durable, and could there be an adjustment,” he suggested.
Trump has previously recognized that his ideas may cause some economic pain for Americans and refuses to rule out a recession.
In an interview with Fox News last month, Trump responded, “I hate to predict things like that,” when asked if he anticipated a recession this year. There is a transitional phase because of what we’re doing.
The president has repeatedly indicated that the economy may experience some degree of “disturbance” as a result of his tariff policies.
“Tariffs are intended to restore America’s wealth and greatness, and progress is being made, which will occur relatively swiftly,” he stated during his recent joint address to Congress. “We are okay with the possibility of a minor disruption. It will not be significant.”
Subsequently, Trump seemed to retract his comments regarding a potential recession, asserting last week that he did not “see it at all” when questioned again about the possibility of an economic downturn.
Although stock market indices have experienced declines following his tariff threats or implementations, Trump expressed last week that he was not troubled by the stock market’s downturn, emphasizing his “very optimistic” outlook for the nation.
On Sunday, Bessent encouraged Americans to observe how other countries respond in the two months following the initiation of reciprocal tariffs in April.
“Either the tariff barriers will be reduced, allowing the U.S. to increase exports, leading to fairer trade. Trade has always been free, but not necessarily fair,” Bessent explained. “Alternatively, if they do not comply, we will generate substantial revenues.”
Bessent also commented on the cuts to the IRS following the Trump administration’s significant reduction of the federal workforce, which included widespread layoffs of probationary employees.
The treasury secretary noted that the IRS had around 15,000 probationary employees who were at risk of termination, but “we retained about 7,500 to 8,500 because we considered them essential to our mission.”
Late last week, two federal judges mandated the Trump administration to temporarily reinstate thousands of dismissed probationary workers.