U.S. Treasury Secretary Bessent Calls Market Corrections Healthy and Normal
U.S. Treasury Secretary Scott Bessent indicated that market corrections are healthy and normal, expressing no concern over current declines. Key points from his statements include:
- Corrections should be tolerated longer before policy support is provided.
- Bessent emphasized long-term positive market outcomes with effective tax policies and deregulation.
- Recent market downturns include the Nasdaq and S&P 500 dropping over 10% due to concerns about trade tariffs impacting economic growth and inflation.
- Bitcoin has fallen nearly 25% from January highs above $109K amid market volatility and lack of new purchases under Trump's digital asset plan.
- Bessent noted potential delays in government intervention until significant market declines occur.
- The Fed is monitoring the effects of Trump's policies and is not rushing to adjust interest rates, with a review meeting scheduled for Wednesday.