Finance Minister Scott Bessent speaks on March 13, 2025 with CNBC.
CNBC
Finance Minister Scott Bessent said on Sunday that the Trump government focused on preventing a financial crisis that could be the result of massive government spending in recent years.
“I could guarantee that we had a financial crisis. I studied it, I taught it and if we had kept up at these issues – everything was not sustainable,” said Bessent on NBCS “Meet the Press”. “We put back and put things on a sustainable path.”
President Donald Trump has made the government financial house priority since taking office. He created the so -called Department of Government Efficiency under the direction of Elon Musk to manage work cuts and early pension incentives in several federal authorities.
Nevertheless, the US debt and deficit problem deteriorated in Trump's first month of office, since the budget deficit for February passed the 1 trillion US dollar.
Bessent found that there are “no guarantees”, there will be no recession.
The market has recently made a turbulent journey when Trump's widespread tariffs have produced concerns about inflation and economic slowdown. The S&P 500 fell into a 10% correction of the February high on Thursday when the volatility rose.
Besser is of the opinion that pullbacks such as the market are currently benign and Trump's Pro-Business policy will increase the market and the economy in the long run.
“I've been in the investment business for 35 years and I can tell you that corrections are healthy. They are normal,” he said. “What is not healthy is direct that you receive these euphoric markets. So you get a financial crisis. It would have been much healthier if someone had applied the brakes in the year '06, '07. We would not have had the problems in the year '08.”
“I'm not worried about the markets. In the long term, if we set up a good tax policy, the markets will do the markets very well,” added Bessent. “I say that a week does not make the market.”
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