Treasury Secretary Scott Bessent expressed no concern over the recent downturn in the stock market, despite fluctuations linked to President Donald Trump's tariff announcements. Speaking on NBC's "Meet the Press," Bessent, with 35 years in the investment field, emphasized that market corrections are a normal and healthy part of the economic cycle, unlike continuous upward trends which can lead to financial crises.
Recent weeks have seen significant declines in major stock indexes, with the S&P 500 losing approximately $5 trillion in value, partly due to Trump's tariff threats. The president has been inconsistent with his tariff policies toward Canada and Mexico and has proposed significant tariffs on allies like the European Union, alongside broad tariffs on aluminum and steel. Bessent confirmed that Trump's "reciprocal" tariffs would commence on April 2.
Bessent remains confident in the long-term health of the markets, attributing potential success to sound tax policies, deregulation, and energy security. Although he did not dismiss the possibility of a recession, he highlighted the unpredictability of events like the COVID-19 pandemic and stressed the importance of reducing reliance on extensive government spending.
Trump has acknowledged that his policies might cause some economic discomfort but insists that tariffs are part of a strategy to strengthen the U.S. economy. He has suggested that any disturbances would be minor and temporary. Despite earlier comments hinting at a recession, Trump later expressed optimism about the country's economic future and downplayed concerns over the market's recent performance.
Bessent advised Americans to observe international reactions to the U.S. tariffs in the coming months, suggesting that either trade barriers will decrease, allowing for fairer trade, or the U.S. will benefit from increased revenue. He also discussed the impact of workforce reductions at the IRS, noting that while many probationary employees were laid off, a significant number were retained due to their importance to the agency's mission.