US Treasury Secretary Scott Bessent has warned that the Trump administration is focused on preventing a financial crisis, which could be triggered by massive government spending over the past few years. Bessent stated that if the current spending levels were continued, it would have led to an unsustainable situation.
The administration’s efforts to get the government’s fiscal house in order are ongoing, with initiatives aimed at reducing debt and deficits. However, the US debt and deficit problem worsened during Trump’s first month in office, reaching a budget shortfall of over $1 trillion in February.
Despite this, Bessent believes that corrections in the market, such as the recent 10% decline in the S&P 500, are normal and healthy. He attributes these pullbacks to Trump’s pro-business policies, which he believes will ultimately boost the market and economy in the long run.
Bessent has experience in the investment business, with 35 years of expertise. He emphasizes that corrections like the recent one are a sign of a strong market, rather than an indication of a financial crisis. He warns against excessive optimism, citing the economic downturns of 2006-2007 as a prime example.
Bessent’s comments suggest that the administration is committed to implementing tax policies and deregulation to promote energy security, which he believes will lead to sustained market growth over time.
Source: https://www.cnbc.com/2025/03/16/treasury-secretary-bessent-says-white-house-is-heading-off-financial-crisis.html