Trump Administration Defends Economic Strategy Amid Market Volatility

Treasury Secretary Scott Bessent emphasizes long-term growth and a 'smooth transition' to reduced federal spending despite rising recession concerns.

Treasury Secretary Scott Bessent stated that the administration prioritizes long-term economic stability over short-term market fluctuations, following a 10% drop in stock values.
Bessent addressed fears of a recession, describing the planned reduction in federal spending as a 'detox period' that does not necessarily lead to economic contraction.
The administration's tariff policies and federal budget cuts have created uncertainty, with increased recession predictions and stock market declines in recent weeks.
Polymarket data shows a 40% chance of a U.S. recession in 2025, reflecting heightened investor concerns about economic policy and trade tensions.
Bessent emphasized that proper policies could drive job creation, income growth, and asset value increases over the medium and long term.