US Treasury Secretary does not rule out economic recession under Trump’s presidency

However, Bessent, speaking on NBC's "Meet the Press," ruled out the possibility of a financial crisis.

When asked whether he could guarantee the absence of a recession while Trump is in power, Bessent responded, "There are no guarantees. Who would have predicted COVID?"

Bessent stated that he is implementing a tough policy that will be long-lasting and that the country needs to break its dependency on what he referred to as massive government spending.

When asked whether an adjustment could lead to a recession, Bessent answered, "There is no reason that it has to."

He also dismissed concerns regarding the recent stock market downturn, stating that corrections were beneficial and that markets "will do great" if the administration implements effective tax policies, increases deregulation, and ensures energy security.

“We are going to have a transition, and we are not going to have a crisis,” US Secretary of the Treasury said.

Last week, US stock markets plummeted amid growing uncertainty caused by President Donald Trump's often unpredictable policies, including threats of tariffs against the US largest trading partners.

A recession is a period of economic decline characterized by a reduction in production, investment, income, and employment levels. Recession is typically defined as a decrease in GDP for two consecutive quarters.

The last US recession occurred in 2020, triggered by the COVID-19 pandemic, which led to a sharp rise in unemployment and a significant reduction in economic activity.

In an interview with Fox News, President Donald Trump did not rule out the possibility of a recession in the US, noting that his economic policies could cause short-term disruptions but would ultimately lead to prosperity.