Treasury Secretary Scott Bessent expressed his lack of concern over recent stock market fluctuations, attributing them to the looming tariff threats initiated by the administration. During an interview, Bessent stated he was "not at all" worried about the volatile market, despite acknowledging potential long-term economic ramifications. The ongoing uncertainty, fueled by President Trump's reciprocal tariffs on other countries set to begin on April 2, has sparked fears of a recession, a possibility Bessent did not rule out entirely.
Bessent, who has been in the investment business for 35 years, emphasized the normalcy of market corrections, describing them as healthy. He cautioned against markets that rise continuously without pause, stating that such euphoria can lead to financial crises.
“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy. They’re normal. What’s not healthy is straight up,” Bessent said.
The stock market has experienced significant declines in recent weeks, with the S&P 500's value decreasing by approximately $5 trillion, largely attributed to Trump's tariff threats. Bessent urged Americans to observe how countries react in the two months following the start of these tariffs. He also highlighted the importance of fair trade policies, noting that U.S. trade policy has been "free, but not fair."
“Either the tariff barriers come down, the U.S. can export more. Trade is fairer. It’s always been free, but not fair,” Bessent remarked.
Despite the uncertain economic landscape, Bessent remains optimistic about the long-term prospects of the U.S. economy. He emphasized that good tax policy, deregulation, and energy security could lead to robust market performance.
“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,” he assured.
In addition to discussing market concerns, Bessent touched on internal matters within the Treasury Department. He revealed that approximately 15,000 probationary IRS employees faced potential termination. However, between 7,500 and 8,500 of those employees were retained due to their essential roles in fulfilling the Treasury's mission.
The market turmoil stems from President Trump's aggressive trade policies aimed at reducing trade imbalances. Trump's stance on tariffs was reiterated with his statement highlighting their role in bolstering America's economic position.
“Tariffs are about making America rich again and making America great again, and it’s happening, and it will happen rather quickly,” Trump declared.