Treasury Secretary Scott Bessent has conceded that a recession is possible but downplayed concerns about the recent stock market sell-off, stating that corrections are “healthy” and “normal.” His comments come amid increased market turbulence following the Trump administration’s sweeping tariffs on key trading partners.
“There are no guarantees,” Bessent said in an interview on NBC’s Meet the Press, when asked whether he could assure Americans that the economy would avoid a downturn. “I can predict that we are putting in robust policies that will be durable.”
The U.S. stock market has seen significant declines in recent weeks, with the S&P 500 losing approximately $5 trillion in value over the past three weeks. Market volatility has been exacerbated by the Trump administration’s shifting stance on tariffs, including new duties imposed on Canada and Mexico, though some exemptions were granted.
Despite the market downturn, Bessent dismissed concerns, arguing that the administration is focused on long-term economic growth. “I’m not worried about the markets,” he said. “Over the long term, if we put good tax policy in place, deregulation, and energy security, the markets will do great.”
The administration’s approach to tariffs has been met with skepticism by the public. According to a recent poll, 56% of American adults disapprove of how President Trump is handling the economy, a notable decline from the 53% approval rating he held at the end of his first term.
Bessent, however, expressed confidence that Americans would eventually support the administration’s policies. “We’ve been in for eight weeks,” he said. “We’re putting the policies in place that will make the affordability crisis go down, inflation moderate … as we set the sails, I am confident that the American people will come our way.”
The Treasury secretary also emphasized that the U.S. economy needs to transition away from what he called “massive government spending,” adding that continued high spending levels could have led to a financial crisis.
The market’s volatility has renewed concerns about a potential economic slowdown. When asked if he could rule out a recession, Bessent avoided making definitive claims but suggested that economic adjustments were necessary. “There is no reason that an adjustment has to mean a recession,” he said.
President Trump has similarly refused to rule out a recession, acknowledging in a recent Fox News interview that economic transitions could bring temporary instability. “There’ll be a little disturbance, but we’re OK with that,” Trump said.
Bessent reiterated that the administration’s approach would ultimately benefit the economy in the long run. “Either the tariff barriers come down, and the U.S. can export more, or if they don’t, we’ll take in substantial revenues,” he said.
