The Trump administration is more focused on the “real economy” rather than “a little bit of volatility” in the financial markets, says Treasury Secretary Scott Bessent.
“We’re focused on the real economy. Can we create an environment where there are long-term gains in the market and long-term gains for the American people?” Bessent said. “I’m not concerned about a little bit of volatility over three weeks.”
Bessent, a seasoned hedge fund manager, said the administration is implementing policies that will “lay the groundwork for both real income gains, job gains, and continued asset gains.”
U.S. stocks have been hammered this month, wiping out trillions of dollars in market value.
The leading benchmark averages extended their losses during the March 13 trading session. The tech-heavy Nasdaq Composite Index and the blue-chip Dow Jones Industrial Average slipped about 1 percent.
The financial markets have been drowning in a sea of red ink on growing inflation expectations and tariff-fueled recession fears.
Trump has been shrugging off the market turmoil.
“Markets are going to go up, and they’re going to go down, but you know what: We have to rebuild our country,” Trump told reporters on March 11.
Last week, the Treasury secretary told the business news network that the United States could undergo a “detox period” after relying on federal spending.
He clarified in his March 13 interview that this does not mean the U.S. economy will slip into a recession.
“Not at all. Doesn’t have to be, because it will depend on how quickly the baton gets handed off. Our goal is to have a smooth transition,” he stated, adding that current government spending levels are “unsustainable.”
The top budgetary items were Social Security ($129 billion), income security ($105 billion), health ($77 billion), Medicare ($75 billion), and net interest payments ($74 billion).
The October–February budget deficit reached a record $1.14 trillion.
“There’s two parts to this: It’s accelerating the economy, growing the revenue base—and controlling expenses. In the United States, we do not have a revenue problem. We have a spending problem,” Bessent said.
According to Bessent, the markets might stabilize amid recent inflation data.
“Maybe the inflation is getting under control, and the market is going to have some confidence in that,” Bessent said.
The producer price index (PPI), which measures prices paid for goods and services by businesses and eventually passed onto consumers, was unchanged at zero percent.
Core producer price, omitting volatile energy and food costs, tumbled 0.1 percent.
Speaking to reporters outside the White House, Bessent defended the president’s tariffs.
“We want to protect the American worker. A lot of these trade deals haven’t been fair,” the administration official said.
This was in response to the EU reinstating an import tax on U.S. whiskey and a wide range of other products.
“This will be great for the wine and champagne businesses in the United States,” Trump said in a Truth Social post.
Bessent, meanwhile, warned against a government shutdown as it would harm the U.S. economy.
“I don’t know what Democrats are thinking here because they’re going to own it, and to the extent that it hurts confidence and hurts the American people,” Bessent said.
The House narrowly approved legislation earlier this week 217–213 to fund federal agencies until September. The bill is now in the Senate, where its fate is unclear as the March 14 partial government shutdown deadline nears.
Senate Minority Leader Chuck Schumer (D-N.Y.) confirmed on March 12 that Democrats would reject the government funding bill.
Instead, Schumer recommended a 30-day funding bill to provide more time to negotiate an agreement.
“Because of that, Republicans do not have the votes in the Senate to invoke cloture on the House CR [continuing resolution].”
Bessent believes the stopgap government funding bill will be the top economic story for the next few days rather than tariffs, suggesting Democrats “want to take us into a shutdown.”
