Bessent says ‘Main Street’s turn’ after Wall Street wealth grew for 4 decades
US Treasury Secretary Scott Bessent recently spoke at the American Bankers Association’s Washington Summit, highlighting President Donald Trump’s focus on supporting Main Street businesses and consumers despite the potential economic downturn caused by new tariffs.
Bessent emphasized the need for Main Street to thrive, stating that the Trump administration’s agenda is geared towards hiring workers, driving investment, and restoring the American Dream for small businesses and individuals. With the recent implementation of higher tariffs, the stock market has experienced a significant decline, with the S&P 500 nearing a 20% bear market.
While Wall Street has historically seen significant growth, Bessent stressed that it is now Main Street’s turn to benefit from economic policies. He pointed out that Main Street’s participation in the stock market has increased over the years, thanks to individual retirement accounts and 401(k)s. As a hedge fund veteran and founder of Key Square Capital Management, Bessent has become a key figure in promoting Trump’s agenda of tax cuts, deregulation, and trade rebalancing.
To prevent a recession, Bessent outlined the importance of de-leveraging the government sector and re-leveraging the private sector gradually. He highlighted the need for policies such as extending the tax bill, implementing 100% depreciation, and supporting initiatives like no tax on tips, Social Security, and overtime pay.
Despite growing concerns about a potential recession due to trade uncertainties, Bessent remains optimistic about the economy’s resilience. However, JPMorgan Chase CEO Jamie Dimon has expressed concerns about the U.S. economy heading towards a recession due to the ongoing trade battle.
In conclusion, Bessent’s remarks at the summit shed light on the administration’s efforts to support Main Street businesses and consumers during challenging economic times. By focusing on policies that prioritize small businesses and individuals, the Trump administration aims to ensure the long-term prosperity of the economy.
