- Scott Bessent told NBC News on Sunday that there are ‘no guarantees’ there won’t be a recession.
- “Like, who would have predicted Covid, right?” he said.
- Bessent also expressed confidence in the stock market despite major fluctuations over the past week.
US Treasury Secretary Scott Bessent said Sunday during an NBC News interview that there are “no guarantees” there won’t be a recession. He also expressed confidence in the major stock indexes amid threats of a prolonged trade war.
“You know that there are no guarantees, like who would have predicted Covid, right?” Bessent told “Meet the Press” moderator Kristen Welker. “I can predict that we are putting in robust policies that will be durable, and there could be an adjustment.”
Bessent said he was “not at all” worried about the state of the stock market, which has fluctuated dramatically since President Donald Trump ramped up his tariff threats.
“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy. They’re normal,” the treasury secretary said. “What’s not healthy is straight up, that you get these euphoric markets. That’s how you get a financial crisis.”
“I’m not worried about the markets,” he continued. “Over the long term, if we put good tax policy in place, deregulation, and energy security, the markets will do great.”
In recent days, the S&P 500 has fallen over 10% from recent highs, while the Nasdaq composite has declined about 14% from its December 2024 high.
Trump, with some exceptions, has levied 25% tariffs against Canada and Mexico. He has also threatened 200% tariffs on European wine and spirits and placed 25% tariffs on all steel and aluminum imports into the United States. Trump has imposed two rounds of 10% tariffs on China since February.
Trump also recently declined to shut down the possibility of a recession. “I hate to predict things like that,” he said during a Fox News interview earlier this month. “There is a period of transition, because what we’re doing is very big.”
His comments led to another market downturn. Last week, the president changed his tune, telling reporters at the White House that he didn’t foresee a recession.
“I don’t see it at all. I think this country is going to boom,” he said. “Markets are going to go up, and they’re going to go down. But you know what? We have to rebuild our country.”
