Speaking on Meet the Press on Sunday, he defended the administration’s economic policies, stating that the government is working to stabilize the economy after years of heavy federal spending.
Bessent’s remarks come amid growing concerns about the economy, with stock markets facing sharp declines in recent weeks and consumer confidence waning.
According to a recent NBC News poll, 54% of voters disapprove of President Trump’s handling of the economy, and J.P. Morgan’s chief economist has placed the likelihood of a U.S. recession in 2025 at 40%. Despite these concerns, Bessent insisted that the administration’s policies are designed to put the country on a more sustainable path.
The Treasury Secretary pointed to the dangers of unchecked government spending, arguing that without intervention, a financial crisis was inevitable. “If we had kept up at these spending levels, everything was unsustainable,” Bessent said. “We are resetting and putting things on a sustainable path.”
To tackle wasteful expenditures, President Trump launched the Department of Government Efficiency (DOGE), led by presidential adviser Elon Musk. The initiative is aimed at cutting unnecessary government programs and eliminating fraud.
Additionally, the administration has imposed tariffs on steel, aluminum, lumber, and other imports, including a 25% duty on goods from Mexico and Canada, citing concerns over illegal immigration and drug trafficking. More tariffs have been placed on Chinese products in response to Beijing’s failure to curb the production of fentanyl precursor chemicals.
The financial markets have responded to these policies with volatility. Over the past month, the Dow Jones Industrial Average has dropped by 6.4%, losing more than 2,800 points, while the Nasdaq has fallen by over 10%, shedding more than 2,000 points.
Despite these losses, Bessent downplayed fears, calling them “healthy corrections.” “I’ve been in the investment business for 35 years,” he said. “Corrections are normal. What’s not healthy is straight-up euphoric markets. That’s how you get a financial crisis. It would have been healthier if someone had put the brakes on in ‘06–’07. We wouldn’t have had the problems in ‘08.”
He expressed confidence that with a combination of tax cuts, deregulation, and energy security, the markets will recover in the long run.
When pressed on whether Americans can be assured that the economy will avoid a downturn, Bessent acknowledged that no one can predict the future with certainty. “There are no guarantees,” he admitted. He cited the unexpected arrival of COVID-19 in 2020 as an example of how unpredictable economic shocks can be.
However, he maintained that the administration is focused on reducing government dependency and revitalizing the private sector. “We have to wean our country off of massive government spending,” he said. “And on the other side, we are going to invigorate the private sector.”
President Trump himself has also acknowledged the uncertainty surrounding the economy. In a recent interview with Fox News’ Maria Bartiromo, he declined to speculate on whether a recession is imminent. “I hate to predict things like that,” Trump said. “There is a period of transition because what we’re doing is very big.”
As the administration pushes forward with its economic agenda, questions remain about how Americans will feel the impact. Whether the White House’s strategy will successfully prevent a crisis—or whether the country is heading toward a recession—remains to be seen.