Despite US Stock Market Crash... US Treasury Secretary Expresses Optimism: "There Will Be No Crisis"
Summary
- US Treasury Secretary Basset described the recent stock market decline as a healthy adjustment and denied the possibility of a crisis.
- Secretary Basset stated that the government's long-term tax and regulatory relief policies would have a positive impact on market performance.
- He emphasized the sustainability of government policies to prevent potential financial crises in both the short and long term.
US Treasury Secretary Bessent: "Not Worried About the Market... It's a Healthy Adjustment"
US Treasury Secretary Scott Bessent (pictured) described the recent stock market decline as "a healthy and normal adjustment" and stated that "there will be no crisis."
According to Bloomberg and other sources, Secretary Bessent, a former hedge fund manager, appeared on NBC's 'Meet the Press' on the 16th (local time) and said that he has been in the investment industry for 35 years, adding, "I'm not worried about the market. If the government implements good tax policies and regulatory relief in the long term and achieves energy security, the market will perform well."
Last week, the US stock market declined amid controversies surrounding the Trump administration's tariff and immigration policies, as well as the economic impact of federal budget cuts. Concerns about economic growth and weakened consumer sentiment also fueled the stock market decline.
Secretary Bessent said, "We are implementing policies that can mitigate financial crises and inflation," adding, "I am confident that if we start this journey now, the American people will follow our path." When asked if he could guarantee there would be no recession during President Trump's term, he replied, "There are no guarantees. Who could have predicted COVID-19?"
Secretary Bessent said, "What I can assure you is that (if left alone) there would have been a financial crisis," adding, "I have studied and taught this. If we had maintained government spending levels, everything would have been unsustainable. We are resetting and moving toward a sustainable path." When asked if the market adjustment could lead to a recession, he said, "There's no reason for that," adding, "We will face a transition period, but there will be no crisis."
Secretary Bessent also stated that the American Dream is not about being able to buy cheap goods from China, saying that people want to own homes and see their children live better than they did. He added, "For this, mortgage rates, the automotive industry, and real wage growth are important."
Ahn Hye-won, Hankyung.com reporter anhw@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
