Aniket Pujari
U.S. Secretary of Treasury Scott Bessent and U.S. President Donald Trump look on during The White House Digital Assets Summit in the State Dining Room of the White House on March 7, 2025 in Washington, DC.
Anna Moneymaker | Getty Images
Treasury Secretary Scott Bessent said Thursday that his previous comments about a “detox period” for the U.S. economy did not mean that a recession was necessary.
“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,” Bessent said on CNBC’s “Squawk on the Street.”
The comments come after Bessent said Friday that the U.S. would undergo a transition period as the federal government tries to cut spending, including laying off public sector workers. Bessent on Thursday reiterated his view that current levels of government spending are “unsustainable.”
“We have excess employment in the government, and those people can be moved to the private sector,” Bessent said.
The Treasury head’s comments last week came as several recent economic indicators have pointed to weakening growth. Job growth was slower than expected in February, and surveys of consumers and small business have shown a decline in confidence.
The stock market has also struggled in recent weeks, with the S&P 500 down 6% in March.
SPX in March
The federal spending cuts are not the only policy changes that President Donald Trump’s administration is pushing. The White House has also increased tariffs on major U.S. trading partners, and a deal to extend existing tax cuts is expected to be a key part of political negotiations later this year.
“There’s two parts to this: It’s accelerating the economy, growing the revenue base — and controlling expenses. In the U.S., we do not have a revenue problem, we have a spending problem,” Bessent said Thursday.
