Treasury Secretary Scott Bessent has dismissed concerns about a potential U.S. recession in light of the new tariffs imposed by the Trump administration, stating there’s no need to “price in a recession.” Bessent pointed to strong job growth in March as proof of economic stability and suggested that recent market fluctuations are temporary, linked to ongoing trade policy shifts.
In an interview, Bessent addressed worries about the impact on retirement savings, noting that most investors, especially those with diversified 401(k) portfolios, have seen relatively modest declines of about 5-6% this year. He urged investors to maintain a long-term view, given the typical volatility during periods of policy change.
Additionally, Bessent confirmed that over 50 countries have reached out to the U.S. to discuss possible tariff exemptions, indicating efforts to ease global trade tensions. He defended the tariffs as a necessary step to address trade imbalances and reduce dependence on foreign goods, particularly those critical to national security.
Despite Bessent’s optimistic outlook, some economists and financial institutions have raised alarms, warning that the tariffs could lead to higher inflation and slower economic growth. The differing views underscore the complexity of assessing the long-term effects of the administration’s trade policies.
