The Secretary of the US Treasury Scott Bessent takes part in the Economic Economic Event of New York in New York, USA, March 6, 2025.
Jeenah Moon Reuters
Treasury Secretary Scott Bessent on Friday confirmed some signs of the weakness of the US economy.
“Could we see that the economy we have inherited is starting to take a bit? Bright. And look, there will be a natural correction when we leave public expenditure to private expenses, “Bessent said about CNBC,”Squawk box. “
“The market and economy have just become addicted. We became addicted to these government expenditure and there will be a detoxification period, “he added.
Describing the economy as inherited is a reference to administration under the command of the then President Joe Biden. Current president Donald Trump He took office on January 20.
As part of Biden, the USA has generally recorded strong economic growth. However, at the end of 2024 there were signs of slowdown, and inflation remained above 2% of the target federal reserve.
During the first few months, the Trump administration took steps to transform the global trade policy and limit the federal labor force. There was not too difficult economic data reflecting the term Trump, although consumer surveys showed decrease in trust.
The report from the February position was published after the Bessent's comments and was shown Unemployment that flows up to 4.1% from 4.0%. According to Jones, the economy added 151,000 jobs, below 170,000 projected by economists.
Tariffs are one of the areas where Trump's policy could be felt quickly. The president hit Canada, Mexico and China with tariffs in the first almost two months of office, although the efforts of Canada and Mexico now have Long list dismissals. The administration plans to implement wider tariffs in April.
“Tariffs are a one-off price correction,” Bessent said, moving away from the idea that the tariffs fuel continuous inflation.
Bessent also said that the administration “does not receive a large loan” for areas where costs have dropped since the inauguration of Trump, such as oil prices and mortgage rates.