Treasury Secretary Scott Bessent says corrections are ‘healthy’ and ‘normal,’ but CNBC’s Jim Cramer disagrees. Cramer believes the recent S&P 500 decline is not typical due to the uncertainty surrounding President Donald Trump’s trade policies.
Cramer argues that corrections can be caused by various factors, including a change in the Federal Reserve’s stance or market exuberance. However, he claims that this is not the case now. Instead, the steep sell-off is linked to “a lack of consistency and a lack of certainty” coming from the White House.
Cramer suggests that Trump’s erratic policy messaging has terrified Wall Street and the broader economy, causing the market to correct itself. He notes that the Dow Jones Industrial Average rose on Monday due to Trump not making any inflammatory posts.
Treasury Secretary Bessent previously stated that “euphoric markets” are unhealthy and can lead to financial crises. However, Cramer disagrees, saying Bessent is implying all corrections are the same when they’re not. The market will struggle to stay positive without certainty from the White House, according to Cramer.
The White House and Treasury Department declined to comment on the matter.
Source: https://www.cnbc.com/2025/03/17/scott-bessent-says-corrections-are-healthy-jim-cramer-disagrees.html