U.S. Treasury Secretary Scott Bessent attended the New York Economic Club held in New York City, USA on March 6, 2025.
Jeenah Moon | Reuters
Treasury Secretary Scott Bessent admitted Friday that there were some signs of weakness in the U.S. economy.
“Can we see this economy we inherited start to roll a little? Of course, as we move from public spending to private spending, it will be a natural adjustment,” Bessent said on CNBC.Squawk Box. ”
“The market and the economy have just attracted. We are already addicted to this government spending and there will be a detox period,” he added.
The economy is described as inheriting the administration led by then-President Joe Biden. Incumbent President Donald Trump took office on January 20.
Under Biden, the United States has seen strong economic growth overall. However, there are signs that the slowdown was slowed by the end of 2024, with inflation still above the Fed’s 2% target.
In the first few months, the Trump administration has taken steps to reshape global trade policies and reduce the federal labor force. Although consumer surveys show Confidence declines.
One area that Trump’s policies can quickly feel is tariffs. During the first two months of his tenure, the president encountered tariffs in Canada, Mexico and China, although Canada and Mexico’s efforts now have a A long list Waiver. The government plans to implement wider tariffs in April.
“Tariffs are a one-time adjustment,” Bessent said, opposing the idea that tariffs will increase inflation.
Bessent also said that the government “has not received much credit” in areas where costs have fallen since Trump’s inauguration, such as oil prices and mortgage rates.
