Treasury Secretary Bessent Dismisses Market Jitters, Suggests ‘Trump Put’ Requires Deeper Declines
U.S. Treasury Secretary Scott Bessent has played down recent market volatility, describing corrections as a normal part of investing, while hinting that the “Trump put” won’t be triggered unless losses become significantly more severe.
Bessent: No Need for Alarm Over Market Swings
In an interview with Bloomberg on Sunday, Bessent reinforced the administration’s stance that short-term downturns do not warrant government intervention.
“Markets are dynamic, and corrections are not only expected but often healthy,” Bessent said. “We are focused on policies that promote long-term economic strength rather than reacting to short-term fluctuations.”
His remarks suggest that despite recent sell-offs in equities and crypto, the administration is unlikely to implement proactive market support measures unless conditions worsen considerably.
Equities and Bitcoin Under Pressure
The S&P 500 and Nasdaq have declined more than 10% from their highs, while Bitcoin (BTC) has dropped 25% from its record $109K level, driven by macroeconomic uncertainty and shifting investor expectations.
While past market downturns have often led to aggressive policy responses, Bessent’s comments imply that investors may need to brace for extended volatility before any intervention is considered.
Fed’s Stance in the Spotlight
Bessent’s position aligns with Federal Reserve Chair Jerome Powell’s recent remarks, signaling that the Fed remains cautious about cutting interest rates despite recent financial market instability.
With the Fed’s next meeting on Wednesday, all eyes are on whether policymakers will maintain their measured approach or signal a greater willingness to support markets in the face of ongoing turbulence.
