America "trying hard" to stop a financial crisis from forming

On March 16, US Treasury Secretary Scott Bessent said that the Trump administration is focusing on preventing a potential financial crisis due to large public spending in the past few years.

Nếu Mỹ tiếp tục duy trì mức chi tiêu như trước đây, chắc chắn nền kinh tế lớn nhất thế giới đã rơi vào tình trạng khủng hoảng tài chính. (Nguồn: Getty Images)

If the US continues to maintain its previous spending levels, the world's largest economy will surely fall into a financial crisis. (Source: Getty Images)

Speaking on NBC 's "Meet the Press," Mr. Bessent asserted that if the US continues to maintain its previous spending levels, the world's largest economy will certainly fall into a financial crisis.

The US Treasury Secretary said that the Trump administration is currently restructuring and putting the economy on a more sustainable trajectory.

The White House chief has prioritized restructuring the government budget since taking office.

Mr. Trump has created a Department of Government Efficiency, headed by billionaire Elon Musk, to cut jobs and encourage early retirement at many federal agencies.

However, the US debt and budget deficit problem has become more serious in the first month of Mr. Trump's inauguration, when the budget deficit for February 2025 has surpassed the $1,000 billion mark.

“There is no guarantee that there won't be a recession,” the Treasury Secretary noted.

Markets have been volatile recently, as President Trump's sweeping tariffs have raised concerns about inflation and the risk of a recession.

Last week, the S&P 500 fell 10% from its February 2025 high.

With 35 years of experience in the investment field, Mr. Bessent believes that market corrections like the current one are healthy and normal.

"What is unhealthy is a market that grows vertically and is overly euphoric. This is how financial crises are formed," the US Treasury Secretary worried.

Secretary Scott Bessent cited that if the market had been "braked" in 2006 and 2007, the world's number 1 economy would not have encountered the problems of 2008. The pro-business policies of the head of the White House will boost the market and the economy in the long term.

Mr. Bessent: “I am not worried about the market, because in the long run, if the US applies good tax policy, deregulation and ensures energy security, the market will function well.”

Source: https://baoquocte.vn/my-ra-suc-chan-mot-cuoc-khung-hoang-tai-chinh-dang-hinh-thanh-307860.html