There is no guarantee that there will be no recession! U.S. Treasury Secretary Bessent: It's not healthy to keep rising, and the government is resetting the economic course

U.S. Treasury Secretary Scott Bessent said Sunday that the Trump administration is making every effort to prevent a financial crisis caused by massive government spending over the past few years. He stressed that the current fiscal situation was "unsustainable" and that the government was undertaking an economic reset to ensure long-term stability.

Massive government spending threatens to trigger a financial crisis?

Bessent said on NBC's "Meet the Press" that without action, the United States will face a serious financial crisis. "I can guarantee that if we continue to maintain this level of spending, sooner or later the economy will collapse." It's not sustainable."

Bessent added that he has thoroughly studied and taught the history of the financial crisis and believes that the current economic strategy is to return the United States to a sustainable path.

Trump established the "Ministry of Government Efficiency" to promote fiscal reform

Since taking office, Trump has made improving his fiscal situation one of his policy priorities. He set up a new agency called the Department of Government Efficiency and appointed Tesla and SpaceX CEO Elon Musk to lead the department to drive layoff plans and early retirement incentives at federal agencies to reduce government spending.

Even so, however, America's fiscal position has not improved. In the first month of Trump's administration, the US federal budget deficit has exceeded $1 trillion, highlighting that fiscal pressure is still severe.

The U.S. economy remains at risk of recession

Despite the administration's aggressive measures, Bessent admits that there is no guarantee that the U.S. will not enter a recession. He pointed out that the increase in market volatility is partly due to the tariffs imposed by the Trump administration, which has raised fears of inflation and economic slowdown. Recently, the US stock market has experienced severe turbulence, and the S&P 500 (S&P 500) has pulled back 10% since its February high, officially entering technical correction territory, and market volatility has risen sharply.

Bessent: The market correction is a healthy phenomenon, and it is still optimistic about economic development in the long run

Although the market is volatile in the short term, Bessent believes that this correction is normal. He stressed that the stock market should not be in a state of "all the way", because this may lead to an economic bubble and eventually a financial crisis. "I've been in the investment business for 35 years, and I can tell you that market corrections are healthy, it's normal. The most unhealthy scenario is when the market continues to rise and goes into a frenzy. That's why we failed to hit the brakes in 2006-2007, which ultimately led to the financial crisis of 2008."

Bessent further stated that as long as the government can implement good tax policies, deregulate and ensure energy security, the market will have room for long-term growth. "I'm not worried about short-term market volatility. As long as our policy is correct, the market will continue to grow strongly in the long run."

Can the Trump administration stabilize the economy? It remains to be seen

Although the Trump administration has actively promoted fiscal reform, the US debt and deficit problems remain serious, and the market unease caused by trade policies still makes the economic outlook uncertain. Bessent believes that short-term market volatility is inevitable, but as long as the policy direction is right, there is still growth potential in the long term. In the future, whether the United States can successfully get out of the fiscal crisis still needs to further observe the effectiveness of the government's administration.

This article cannot guarantee that there will be no recession! U.S. Treasury Secretary Bessent: It's not healthy to keep rising, and the government is resetting the economic course First appeared in chain news ABMedia.