Bessent: Corrections Are Healthy, but Economic Outlook Might Be Uncertain

TradingKey – As the S&P 500 enters a technical correction, U.S. Treasury Secretary Scott Bessent has once again addressed market concerns, attempting to calm investor anxieties. With decades of Wall Street investment experience, Bessent argues that the current market pullback is a healthy development.

On Sunday, March 16, Bessent stated in an interview, "I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy, they are normal."

Bessent expressed little concern about the market downturn, adding, "Over the long term, if we put good tax policy in place, deregulation and energy security, the markets will do great."

Last week, the S&P 500 and Nasdaq Composite fell for four consecutive weeks, with the S&P 500 dropping over 10% from its all-time high to enter correction territory. The Dow Jones Industrial Average slid more than 3%, marking its worst weekly decline since March 2023.

Bessent emphasized that what's not healthy is straight-up, that is, euphoric markets , which may signal impending financial crises. 

He said, "It would have been healthier if someone had put the brakes on in '06-'07. We wouldn't have had the problems in '08."

While defending the market turbulence triggered by Trump’s policies like tariffs, Bessent refused to guarantee immunity from a recession during a Trump 2.0 administration, stating bluntly, "There are no guarantees."

He highlighted the government’s focus on implementing robust policies that would be durable and stressed the need to cut massive government spending.

Bessent said, "We are going to have a transition, and we are not going to have a crisis."