Treasury Secretary Scott Bessent dismissed growing concerns over a potential recession, attributing the anxiety to media exaggeration. In an interview on ABC’s “This Week,” Bessent emphasized that consumer behavior does not align with the pessimistic narratives presented in the press.
Bessent highlighted that, despite alarming headlines, consumer spending remains robust. He pointed out that while polls suggest economic apprehension, actual consumer activity tells a different story. Bessent criticized the media for not reporting positive developments, such as the stock market’s rebound after a brief downturn, suggesting that the press focuses disproportionately on negative news.
Addressing the administration’s trade policies, Bessent defended President Trump’s strategy of imposing tariffs as a negotiation tool. He described this approach as “strategic uncertainty,” intended to pressure trading partners into fairer agreements. Bessent noted that some Asian countries have already shown willingness to adjust their trade practices in response to U.S. tariffs.
Regarding trade discussions with China, Bessent clarified that while he had recent interactions with Chinese officials concerning financial stability, he was unaware of any direct talks between President Trump and President Xi Jinping. This statement contrasts with President Trump’s claims of ongoing negotiations, highlighting inconsistencies within the administration’s messaging.
Bessent also addressed concerns from small business owners affected by tariffs, asserting that the Chinese economy cannot sustain prolonged trade restrictions. He argued that the U.S. aims to transition from low-wage manufacturing to high-performance industries, fostering better-paying jobs domestically.
In response to warnings from major retailers about potential inventory shortages, Bessent reiterated the administration’s commitment to negotiating trade deals that would alleviate such issues. He emphasized that the goal is to create a more balanced and fair trade environment that benefits American workers and businesses.
Bessent acknowledged the challenges of reshoring manufacturing jobs but stressed that the administration is actively working with companies to facilitate this transition. He highlighted the importance of creating sustainable, high-quality employment opportunities as part of the broader economic strategy.
While market volatility has raised concerns among investors, Bessent maintained that the administration’s policies are geared toward long-term economic health. He encouraged a focus on structural reforms and emphasized the importance of resilience during periods of economic adjustment.
