Recently, concerns over renewed inflation and economic slowdown in the USA triggered by Trump’s tariffs have led to a continuous decline in the US stock market. In response, US Treasury Secretary Scott Basset reassured investors on Sunday that stock market adjustments are healthy, and he is not worried about the long-term trends of the US market. He also stated that the focus of the Trump administration is to prevent a financial crisis and refused to rule out the possibility of a recession in the USA.

Accompanied by soaring volatility, as of last Thursday, the S&P 500 Index has fallen 10% from its February high, officially entering correction territory. Last week, the Dow Jones Industrial Average accumulated a 3% decline, and the S&P 500 Index and Nasdaq Composite Index cumulatively dropped more than 2%.

Basset believes that the current market correction is healthy, and in the long run, Trump's pro-business policies will boost the market and the economy.

"I have been in the investment industry for 35 years, and I can tell you that adjustments are healthy. This is normal," Basset, who once managed the hedge fund Key Square Group, said. "What is unhealthy is a continuous rise and an exuberant market. That is why financial crises occur. If someone had hit the brakes in 2006 or 2007, things would have been much better. We wouldn’t have faced these problems in 2008."

"I am not worried about the market. In the long run, if we implement sound tax policies, deregulation, and energy security, the market will perform well," Basset added. "I believe that a week’s time cannot change the market."

Efforts are being made to avoid a financial crisis.

Basset pointed out that if the US government maintains its current spending levels, a financial crisis is inevitable.

"What I can guarantee is that we will face a financial crisis. I have studied it, and I have taught it; if we continue to maintain this level of spending—then everything is unsustainable," Bessent said on a program. "We are readjusting to put things on a sustainable path."

"Our government's deficit is very large, accounting for 6.7% of GDP," Bessent stated. "We have never seen this situation unless it is during a time of war or economic recession. We are responsibly reducing the deficit. We will transform. We will not fall into crisis."

Since taking office, Trump has prioritized restructuring government finances. He established what is called the Department of Government Efficiency, promoting layoffs and offering early retirement incentives across multiple federal agencies.

Nevertheless, in the first month of Trump's presidency, the debt and deficit issues in the USA further deteriorated. Data showed that the USA's budget deficit in February reached 307 billion dollars, with the deficit for the first five months of this fiscal year reaching 1.15 trillion dollars, setting a historical record for the same period.

However, Bessent refused to rule out the possibility of an economic recession in the USA. "You know, nothing is absolute," he said, while hinting that the USA economy will experience an "adjustment."

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