Scott Bessent retirement recession concerns eased as Treasury Secretary downplays fears despite market volatility from Trump’s tariffs.
Speaking on Meet the Press, Bessent said Americans nearing retirement are focused on long-term gains, not daily market movements.
“Americans who want to retire right now… don’t look at the day-to-day fluctuations,” Bessent said. “The market is a long-term investment.”
His comments followed a historic downturn in U.S. markets last week, with the Dow, Nasdaq, and S&P 500 all posting losses not seen since early COVID-19 days. The downturn came in response to Trump’s announcement of tariffs up to 54% on major trading partners.
Criticism from Democrats and Market Experts
Senator Adam Schiff (D-CA) slammed both Trump and Bessent’s optimism, calling it out-of-touch.
“Retirement savings are on fire, and there he is on the golf course,” Schiff said, referring to Trump’s time at Mar-a-Lago. “That may be the most enduring image of his presidency.”
Schiff also took aim at Bessent and Trump’s wealth:
“Maybe they don’t have to watch their 401(k)s. But my constituents do.”
Trump: ‘Hang Tough’ Through Economic Revolution
President Trump, on his social platform Truth Social, called the moment an “economic revolution,” saying:
“We are bringing back jobs and businesses like never before. Hang tough… It won’t be easy, but the end result will be historic.”
Bessent, Rollins, and Hassett Downplay Market Shock
Bessent compared the current situation to Reagan’s fight against inflation, saying temporary price spikes are part of an “adjustment process.” He reiterated that the administration is focused on building long-term prosperity.
Agriculture Secretary Brooke Rollins echoed that sentiment on Media, stating, “The markets are adjusting.” Meanwhile, National Economic Council Director Kevin Hassett insisted that foreign countries, not U.S. consumers, would bear the cost of tariffs.
A Divided Outlook
While Republicans say tariffs will revive U.S. manufacturing, Democrats warn that retirement accounts and consumer spending could suffer. The future of the U.S. economy hinges on whether this bold tariff strategy can withstand global retaliation and domestic anxiety.
Source: NBC News