Treasury Secretary Scott Bescent revealed Thursday that the Trump administration is not worried about stock market fluctuations.
Speaking about CNBC’s “scoke on the streets,” Bescent said the White House is focusing on long-term economic growth rather than short-term fluctuations.
“We’re focusing on the real economy. Can we create an environment where the market has long-term benefits and the Americans have long-term benefits?” he said. “I’ve not been worried about a bit of volatility over the course of three weeks.”
His comments come when the market experiences turbulence. The Dow Jones industrial average has fallen by more than 7% in the past month, with losses accelerating as President Donald Trump continues to impose tariffs on major US trading partners, including Canada, Mexico and China.
Bescent says market volatility won’t change the administration’s strategy
Bessent argued that the decline in the stock market was not the cause of panic. He emphasized that long-term investments are more stable than short-term plays.
“The reason stocks are safe and big investments is because you’re looking at them in the long term,” he said. “When we start watching Micro Horizons, inventory becomes very dangerous. So we’re focusing on the medium, long term.”
He argued that economic policies under Trump’s leadership will lead to sustained growth. “If we put in place the right policies, we can say that we will lay the foundation for both real income improvements, employment benefits and ongoing asset benefits,” the market remained volatile, with stock averages shaking throughout the morning session. The Bureau of Labor Statistics reported that wholesale inflation was flat in February, much lower than Wall Street’s 0.3% forecast.
This came after another report on Wednesday that showed a slight drop in consumer prices. “Maybe inflation is controlled and the market will have some confidence in it,” Bescent said.
Bessent also reportedly told CNBC that previous comments on the “detox period” of the US economy did not mean that a recession was necessary.
“No at all. It doesn’t have to be because it depends on how quickly the baton is handed over. Our goal is to make a smooth transition. We are overemployed in government and those people can move into the private sector,” Bescent said Thursday.
“There are two parts to this: it accelerates the economy, expands its revenue base, manages expenses. In the US, there is no revenue problem, it has a expenditure problem.”
Trump threatens new tariffs as the trade war escalates
Trump’s trade policy has been a major factor in recent market volatility. On Wednesday, he vowed to retaliate against the European Union for its response to a 25% tariff on steel and aluminum imports. The EU has announced its rebels on US goods worth 26 billion euros ($28.333 billion) that is expected to come into effect in April.
Speaking to reporters, Trump said the White House would be proactive. “We’re doing mutual duties, so whatever they charge us, we’re charging them. No one can complain about it,” he said. When asked if he would retaliate, he replied, “Of course I will respond.”
Sitting next to Ireland’s Prime Minister Mishal Martin, Trump claimed Ireland and other European countries had been using the United States for many years.
“The problem is that our country hasn’t responded (previously),” he said. He also reiterated his claim that the EU was established to exploit the United States despite the goals of regional cooperation.
Trump then specifically targeted Ireland, denounced the country’s low corporate tax rates for what he called the US “a massive trade deficit.”
Data from the Central Statistics Office (CSO) in Ireland shows that in 2023 Ireland recorded its largest commodity trade surplus, the US, that year, 31 billion euros.
Trump has consistently criticised trade imbalances, targeting Mexico, China and Canada with tariffs early in the second term. However, the EU has largely avoided the direct penalties that have been in the past.
True socially, Trump denounced the EU’s latest tariffs and warned that trade restrictions would be reduced if the course was not reversed.
“The European Union, one of the world’s most hostile and abusive tax and customs authorities founded for the sole purpose of using the United States, has only placed a nasty 50% tariff on whiskey,” he writes.
“If this tariff is not removed immediately, the US will soon place a 200% tariff on all wine, champagne and alcoholic products coming from France and other countries representing the EU. This is perfect for the US wine and champagne business.”
Trump also took a shot with the Wall Street Journal, calling it a “globalist” outlet that doesn’t understand trade policy. “The Globalist Wall Street Journal doesn’t know what they’re doing or saying.
They are owned by the contaminated ideas of the European Union, formed for the primary purpose of “screwing” the United States of America,” he said.
“Their (WSJ!) thinking is outdated and weak and very bad for America. But there’s no fear, we win everything!!! Egg prices are falling, oil is falling, interest rates are falling, tariff-related money is poured into the US.”
According to data from the European Commission, the EU won a commodity trade surplus of 155.8 billion euros in the US in 2023, carrying out a deficit of 100 billion euros in services. The total amount of EU-US trade in goods and services for the year reached 1.6 trillion euros.
The largest categories of EU exports to the US were machinery, vehicles, chemicals, manufactured goods and medicines.
Since taking office in January, Trump has repeatedly signaled that tariffs have come on European goods. At a cabinet meeting on February 26, he again accused the EU of blocking US exports. “They really took advantage of us,” he said.
“They don’t accept our cars, essentially our produce. They don’t use any kind of reasons, and we accept all of them.”
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