U.S. Treasury Secretary Scott Bessent recently mentioned in an interview with NBC that a “transition” phase in the U.S. economy is unavoidable, echoing similar sentiments expressed by President Donald Trump. Bessent remarked that while a recession is not anticipated, the recent volatility in the U.S. stock market may lead to significant growth if Trump’s policies are implemented long-term.
On March 16th, in his appearance on NBC, Bessent addressed investors’ concerns about the U.S. economy, emphasizing the need for a long-term outlook. He pointed out that the U.S. government has been operating with substantial deficits, noting that the current deficit stands at 6.7% of GDP, a figure not seen during wartime or recession. He reassured that the current situation is being managed sensibly and that while there will be a transition, it will not result in a crisis.
When asked if he could guarantee there would be no recession during Trump’s second term, Bessent responded, “There are no guarantees in this world.” He questioned whether anyone could have predicted COVID-19, highlighting the unpredictability of future events. Bessent stated that sustainable and strong policies are being introduced and emphasized the need for the country to move away from heavy reliance on government spending.
Bessent’s statements align with President Trump’s narrative, particularly regarding the aggressive tariff measures that have raised concerns about a potential economic downturn. In a previous interview, Trump avoided predicting a recession, noting ongoing major initiatives that would result in a transition and reclaim wealth for the U.S. He mentioned that while the stock market has been on a decline, his focus is on building a strong nation rather than short-term market fluctuations.
Following Trump’s remarks, the three major U.S. stock indices dropped by 2-4% on March 10th, but showed slight fluctuations before recovering by 1-2% on March 14th, driven by low-price buying sentiment. Trump’s recent avoidance of discussing tariffs or the stock market has contributed to this recovery.
Bessent, reflecting on the stock market’s recent state, stated that he has been involved in investment activities for 35 years and views market adjustments as healthy and normal. He expressed confidence that the market would achieve substantial success with the introduction of good tax policies, regulatory relaxation, and energy security.
Meanwhile, a recent poll conducted by NBC in partnership with Hart Research and Public Opinion Strategies, surveying 1,000 voters nationwide, revealed that 44% support Trump’s economic policies, while 54% do not, with a margin of error of ±3.1 percentage points.