Treasury Secretary Scott Becent on Sunday dismissed concerns that Americans are concerned about the potential imminent recession and the status of their retirement plans, saying President Donald Trump and his administration are “building a long-term economic foundation for prosperity.”
In an interview with NBC News’ “Meet the Press,” Bessent called it the “false story” that after a stock market slump reduced retirement savings, he could remain silent to quit after resignation.
“I think it’s a false story,” he told moderator Kristen Welker. “I don’t think Americans who want to retire now, Americans who have cleaned up in their savings accounts for years, will see daily fluctuations.”
“In fact, most Americans don’t have everything in the market,” added Bescent. “People have a long-term view… The reason the stock market is considered a good investment is because it’s a long-term investment. If you look every day, every week, it’s very dangerous. In the long-term, it’s a good investment.”
Bescent said he is not worried about the stock market’s negative reaction to Trump’s announcement that he is leviing tariffs as high as 54% on the largest US trading partner.
“The market has consistently underestimated Donald Trump,” Bescent told Welker.
He said later in the interview, “We know how the market reacts in a week. What we’re looking at is building a long-term economic foundation for prosperity, and I think the previous administration has led us on the course towards a financial disaster.”
In the days after Trump’s tariff announcement, US stock markets plummeted with the Nasdaq, Dow Jones Industrial Average and S&P 500 marking losses that have not been seen since the start of the Covid pandemic.
On Saturday, in the wake of a market slump, Trump defended his tariff plans and urged consumers and investors to be “stricken.”
“We’re reviving jobs and businesses more than ever. Already, it’s an investment of over $5 trillion and it’s rising rapidly! This is an economic revolution and we’ll win. It’s not easy, but the end result is not historic.”
Asked about this economic uncertainty and the period of “dangling in difficulties,” Bescent said the Trump administration would “hold the course” to impose tariffs and defeat inflation, but he didn’t say how long it would take.
“This is a adjustment process,” he said. “What we saw when President (Ronald) Reagan defeated the big inflation, and then we passed (President Jimmy) Carter Murrays. There was some terrible sensuality at the time, but he’s going to hold the course and we’re going to hold the course.”
Bessent adds that the previous “unsustainable trade system” is also due to today’s economic uncertainty, telling Welker “this is this unsustainable system that has been built for years and years in the building.”
“Our trading partners are using us. We can see it through a large surplus. We can see this through a large budget deficit,” the secretary said.