FX168 Financial News Agency (Asia Pacific) reported that US Treasury Secretary Scott Bessent stated on Sunday (March 16) that he is not worried about the decline in the US stock market, emphasizing that market adjustments are healthy. The stock market has plummeted multiple times after the USA issued tariff threats. He pointed out that the Trump administration is preventing a financial crisis that is "inevitable."
Bessent stated: "I have been in the investment Industry for 35 years, and I can tell you that adjustments are healthy. This is normal; what is unhealthy is a straight-line rise in the market. A booming market is the cause of a financial crisis." #High Inflation/Economic Recession#
(Source: CNBC)
"I am not worried about the market. In the long term, if we implement good tax policies, deregulation, and Energy security, the market will perform well," he added.
"Therefore, I can predict that we are implementing strong and sustainable policies, and adjustments may also occur."
"The USA needs to reduce massive government spending. Tariffs are to make America wealthy again and great again, and that is happening and will happen soon."
"There will be some disruptions, but we can accept it. There will not be a significant impact."
Besent also mentioned that the Trump administration is working to prevent a financial crisis triggered by the government’s massive spending over the past few years.
"I can assure you that we will definitely experience a financial crisis. I have studied financial crises and taught about them, and if we continue at this level of spending, then everything is unsustainable," Besent said on an NBC program. "We are readjusting to put everything on a sustainable path."
Since Trump took office, he has prioritized restructuring government finances. He established the so-called Department of Government Efficiency (DOGE), led by billionaire Elon Musk, to spearhead layoffs and early retirement incentives across multiple federal agencies.
However, in the first month of Trump's presidency, the debt and deficit issues in the USA worsened, with the budget deficit in February exceeding 1 trillion dollars.
Besent pointed out that "there is no guarantee" that a recession will not occur.
Recent market volatility has raised concerns over inflation and economic slowdown due to Trump’s massive tariffs. On Thursday, amid heightened volatility, the S&P 500 index fell 10% from its February peak.
Besent believes that the current market correction is healthy, and Trump’s pro-business policies will promote market and economic development in the long term.
In other parts of the interview, Besent praised a recent meeting with small bankers, saying, "They are ready to start lending."
Before commenting at the Bessent event, Trump was also asked earlier this month about the possibility of an economic recession.
"I hate predicting these kinds of things, it is a transitional period because what we are doing is very big. We are bringing wealth back to the USA. This is a big deal," Trump explained.
He emphasized: "There will always be a period - it takes a little time, it takes a little time. But I think it should be a good thing for us. I mean, I think it should be a good thing. Ultimately, it will be a good thing for farmers."
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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