GuShiio.com ① U.S. Treasury Secretary Scott Bessant said that as the Trump administration reduces public spending, the U.S. economy may experience some chaos;
② He said that financial markets and the U.S. economy have become “addicted” to government spending during the Biden era, and there will be a “detoxification period” in the future.
Cailian News, March 8 (Editor Zhao Hao)U.S. Treasury Secretary Scott Bessent recently said that the U.S. economy may experience some chaos as the Trump administration shifts its growth base from the government sector to the private sector.
On Friday (March 7) local time, Besent told the media,”Will we see the economy we inherited starting to fluctuate? Of course. Look, as we gradually reduce public spending, there will be a natural adjustment.”
Recently, many economic indicators in the United States have shown that growth is slowing down. Key indicators measuring manufacturing have stagnated in March, and consumer confidence has dropped significantly.
In response, Besent argued that the Biden administration’s expansion was artificially supported by government spending. He saidFinancial markets and the U.S. economy are already “addicted” to government spending, and there will be a “detoxification period” in the future.
Basent emphasized that Trump’s economic policies“It is a very necessary route adjustment”“We will observe if there is pain. I believe that if our policies are correct, the transition will be very smooth.”
Shortly before press time, Trump also said,”We will reduce the size of government and expand the private sector. We will have more manufacturing jobs than government jobs.”
When asked if Trump would change policy measures to support the stock market, Besent said,There is no such thing as what stock analysts call a “Trump put”,”Trump’s optimistic prediction is that if we have good policies, then the market will rise.”
Due to the Trump administration’s frequent announcements of additional tariffs on foreign goods, U.S. stocks are set to record three consecutive weekly losses. Market participants pointed to unease about Trump’s plans for possible further protectionist actions in early April.
When asked if tariffs would be maintained for a long time, Besent said,”We will wait and see.”
On Thursday, Trump declared that over time, tariffs would put the United States on a stronger footing and the economy “will always have a little brief chaos, which I don’t think will be too big.”
Trump also claimed that he “didn’t even look at the stock market.” In response, Besent said: “President Trump receives a lot of information every day.The stock market is part of it。”
