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, seeking to ease 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."

Expressing little concern over the market downturn, he added, "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 recorded their four consecutive weekly decline, with the S&P 500 falling over 10% from its all-time high, officially entering correction territory. The Dow Jones Industrial Average slid more than 3%, marking its worst weekly decline since March 2023.

Bessent emphasized that what is 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 market turbulence triggered by Trump’s policies , such as tariffs, Bessent refused to guarantee that a second Trump administration would be immune from recession, stating bluntly, "There are no guarantees."

He highlighted the administration’s focus on implementing durable economic policies and stressed the need to rein in excessive massive government spending.

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