Treasury Secretary Scott Bessent said Sunday that “there are no guarantees” when it comes to a potential recession hitting the United States.
“Like who would have predicted COVID?” Bessent told NBC’s Kristen Welker when asked on “Meet the Press” whether he could reassure Americans about the country’s economic future.
“I can predict that we are putting in robust policies that will be durable,” Bessent added, including trying to “wean our country off” of “massive government spending.”
His comments come as other members of President Donald Trump’s administration, including the president himself, have similarly hesitated to make promises about what’s to come for the nation’s finances.
Meanwhile, consumer confidence has plunged, and 54% of voters in a recent NBC News poll say they disapprove of Trump’s handling of the economy. J.P. Morgan’s chief economist said last week that there’s a 40% chance of a U.S. recession in 2025.
“I hate to predict things like that,” Trump told Fox host Maria Bartiromo last week when asked about the possibility of a recession this year.
“There is a period of transition,” the president continued, “because what we’re doing is very big.”
Bessent this weekend said he believes there’s “no reason” that an adjustment period has to mean recession.
“I can tell you that if we kept on this track, what I could guarantee is we would have had a financial crisis,” Bessent said, referring to spending levels and policies prior to Trump taking office. “We are resetting, and we are putting things on a sustainable path.”
The Treasury secretary said he is also not worried about the stock market, coming out of a particularly tumultuous week. U.S. stock markets closed down sharply last week amid mounting uncertainties arising from Trump’s frequently shifting policies, including tariff threats against the biggest U.S. trading partners.
“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy. They’re normal,” Bessent told NBC.
The broad S&P 500 index dropped into correction territory on Thursday, after Trump escalated risks of a trade war with the European Union. A correction is at least 10% down from a record high, which for the S&P 500 was set on February 19.
