Finance Minister Scott Bessent said on Thursday that he had previously been aboutdetoxification period“For the U.S. economy, it does not mean that there is a need for a recession.
Bessent on CNBC’s,” said CNBC: “Not at all.squ. ”
The U.S. will experience a transition period as the federal government tries to cut spending, including layoffs on public sector workers. Bessent reiterated his view Thursday that current government spending is “unsustainable.”
“We have too many jobs in government and these people can move to the private sector,” Besent said.
Last week, the Finance Minister’s comments were due to some recent economic indicators that growth has weakened. Work growth Slower than expected in February, surveys of consumers and small businesses showed a decline in confidence.
The stock market has also struggled in recent weeks. S&P 500 It fell 6% in March.
SPX in March
Cutting federal spending is not the only policy change President Donald Trump’s administration is pushing for. There are also Increase tariffs On the side of major U.S. trading partners, an agreement that expects existing tax cuts is expected to be a key part of political negotiations later this year.
“There are two parts of this: It’s accelerating the economy, increasing the income base and controlling spending. In the U.S., we have no income issues, we have a spending issue,” Bessent said on Thursday.
