Treasury Secretary Scott Bescent said Thursday that previous comments on the “detox period” of the US economy did not mean that a recession was necessary.
“It’s not at all. It depends on how quickly the baton is handed over, so we don’t have to. Our goal is to make a smooth transition,” Bescent said of CNBC’s “scoke on the streets.”
The comments come after Bescent said Friday that the US would go through a transition period as the federal government seeks to cut spending, including giving birth to public sector workers. Bescent reiterated his view on Thursday that the current level of government spending is “unsustainable.”
“We’re overemployed in the government and those people can move into the private sector,” Bescent said.
The Treasury Director’s comments last week came as he pointed out that several recent economic indicators weaken growth. Employment growth is slower than expected in February, with consumer and small business surveys showing confidence weakening.
The stock market has also been in recent weeks. S&P 500 A 6% decrease in March.
March SPX
Federal spending cuts are not the only policy changes pushed by President Donald Trump’s administration. The White House has also increased tariffs from its major US trading partners, and contracts extending existing tax cuts are expected to become an important part of political negotiations later this year.
“This has two parts: accelerated economy, widening revenue base, and control costs. There is no revenue issues in the US. There is a spending issue,” Bessent said Thursday.
