Treasury Secretary Scott Bessent said Sunday that the Trump administration is focused on preventing a financial crisis stemming from years of excessive government spending.
“What I could guarantee is we would have had a financial crisis. I’ve studied it, I’ve taught it, and if we had kept up at these spending levels that — everything was unsustainable,” Bessent said on NBC’s Meet the Press. “We are resetting, and we are putting things on a sustainable path.”
Government Spending and Deficit Concerns
President Donald Trump has prioritized government efficiency since taking office, creating the Department of Government Efficiency (DOGE), led by Elon Musk, to oversee job cuts and early retirement incentives across federal agencies.
Despite these measures, the U.S. budget deficit has continued to climb, surpassing $1 trillion in February, marking a worsening of the fiscal situation during Trump’s first month back in office.
Market Volatility and Recession Risks
Bessent acknowledged there are “no guarantees” the U.S. will avoid a recession, as financial markets have struggled amid Trump’s broad tariff policies. The S&P 500 recently entered a 10% correction from its February highs as market volatility spiked.
“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy. They’re normal,” Bessent said. “What’s not healthy is straight up, that you get these euphoric markets. That’s how you get a financial crisis.”
Long-Term Optimism for US Economy
Despite near-term uncertainty, Bessent remains optimistic that Trump’s pro-business policies, including tax cuts, deregulation, and energy security, will boost both the economy and markets in the long run.
“I’m not worried about the markets. Over the long term, if we put good tax policy in place, deregulation and energy security, the markets will do great,” Bessent said.
