Treasury Secretary Bessent says Trump is heading off financial crisis

Treasury Secretary Scott Bessent recently spoke to CNBC on March 13th, 2025, emphasizing the Trump administration’s focus on preventing a potential financial crisis stemming from excessive government spending in recent years.

Bessent highlighted the unsustainable nature of past spending levels, stating that continued fiscal irresponsibility would have inevitably led to a financial crisis. Recognizing the need for a reset, the administration is committed to putting the country on a sustainable economic path.

President Donald Trump has prioritized fiscal responsibility since taking office, establishing the Department of Government Efficiency, led by Elon Musk, to implement job cuts and early retirement incentives across federal agencies. Despite these efforts, the U.S. debt and deficit have continued to grow, with the budget shortfall surpassing $1 trillion in February.

Bessent acknowledged the uncertainty surrounding the possibility of a recession, particularly amidst market volatility driven by concerns over inflation and economic slowdown due to Trump’s tariffs. Despite recent market corrections, Bessent remains optimistic about the long-term impact of Trump’s pro-business policies on the economy.

Drawing on his decades of experience in the investment business, Bessent emphasized the importance of market corrections as a healthy and normal part of economic cycles. He expressed confidence in the positive effects of sound tax policies, deregulation, and energy security on driving market growth over time.

In conclusion, Bessent reassured investors that short-term market fluctuations should not overshadow the potential for sustained economic growth under the administration’s policies. By prioritizing stability and long-term sustainability, the Trump administration aims to steer the country away from financial crisis and towards a path of economic prosperity.