Treasury Secretary Scott Bessent warned Sunday that unchecked government spending would have led to a financial meltdown, calling the situation unsustainable.
Speaking on NBC’s “Meet the Press,” Bessent defended the Trump administration’s efforts to curb the crisis before it takes root.
“What I could guarantee is we would have had a financial crisis. I’ve studied it, I’ve taught it, and if we had kept up at these spending levels that — everything was unsustainable,” Bessent said.
“We are resetting, and we are putting things on a sustainable path.”
President Donald Trump has made fiscal discipline a priority since taking office, creating the Department of Government Efficiency, led by Elon Musk, to drive spending cuts and streamline operations across federal agencies.
Yet, the government’s financial troubles are mounting. In February alone, the federal deficit topped $1 trillion, underscoring the scale of the challenge.
Bessent noted that there are no guarantees a recession will not occur. Markets have been rattled by Trump’s widespread tariffs, fueling concerns about inflation and economic uncertainty.
The S&P 500 recently fell into a 10% correction from its February peak as volatility surged.
Despite the turbulence, Bessent urged calm, dismissing concerns of a prolonged downturn. He emphasized that a stable business environment is key to long-term economic resilience.
He stated that market corrections are a normal part of the economic cycle and that rapid, unchecked growth often leads to financial instability.
If corrective measures had been taken in 2006 or 2007, he suggested, the financial collapse of 2008 might have been avoided.
Looking ahead, Bessent remains confident in the administration’s pro-business policies.
“I’m not worried about the markets. Over the long term, if we put good tax policy in place, deregulation, and energy security, the markets will do great,” he said. “I say that one week does not the market make.”
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