Treasury Secretary Bessent Signals Higher Pain Threshold Before ‘Trump Put’ Kicks In
U.S. Treasury Secretary Scott Bessent has suggested that market corrections are a normal and healthy occurrence, indicating that the “Trump put”—policy support for financial markets—may not come as quickly as some investors expect.
Bessent: Market Corrections Are Normal
Speaking on NBC’s Meet The Press on Sunday, Bessent downplayed recent market turbulence, emphasizing that pullbacks are part of a functioning market cycle.
“I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy, they are normal,” Bessent said, according to Bloomberg. “I‘m not worried about the markets. Over the long term, if we put good tax policy in place, deregulation, and energy security, the markets will do great.”
His comments counter expectations that the Trump administration will quickly intervene to stabilize markets, particularly in response to concerns over trade tariffs. President Donald Trump has also recently stated that he is not focused on the stock market, reinforcing the notion that investors shouldn’t expect immediate government intervention.
Wall Street and Bitcoin Face Sell-Off
Both traditional and digital asset markets have experienced sharp corrections. The Nasdaq and S&P 500 have dropped over 10% from their February highs, slipping into correction territory amid concerns that Trump’s tariffs could slow economic growth and fuel inflation.
Bitcoin (BTC) has also seen a significant pullback, dropping nearly 25% from its all-time high above $109K in January, according to CoinDesk Indices data. The decline reflects broader risk-off sentiment on Wall Street and disappointment over the lack of fresh BTC purchases under Trump’s strategic digital assets reserve plan.
Policy Support Could Take Time
With markets under pressure, expectations for government or Federal Reserve (Fed) intervention have grown, particularly within the crypto community. However, Bessent’s remarks suggest that any policy support may take longer to materialize or require deeper market declines before action is taken.
He previously stated that the Trump administration’s focus is on lowering the yield of the 10-year Treasury note, a key benchmark for long-term borrowing costs.
Meanwhile, Federal Reserve Chair Jerome Powell and other Fed officials have emphasized their wait-and-see approach, noting earlier this month that they are monitoring the net effects of Trump’s policies on the economy and are not rushing to cut interest rates.
Eyes on the Fed’s Next Move
Investors are now awaiting the Fed’s policy meeting this week, with a key rate decision expected on Wednesday. The outcome could provide further clues on whether policymakers are inclined to step in amid the current market downturn or if they will maintain their cautious stance.
