Scott Bessent, the U.S. Treasury Secretary, has reassured the public of the Trump administration's commitment to the long-term health of the economy and financial markets. Speaking with CNBC's Sara Eisen on "Squawk on the Street" on Thursday, Bessent addressed recent market fluctuations and emphasized that the administration is not overly concerned with short-term market gyrations.
Bessent highlighted that the administration is keenly attentive to market movements but maintains a primary focus on medium- and long-term economic prospects. Despite acknowledging that the Dow Jones Industrial Average has experienced a loss of more than 7% over the past month, Bessent conveyed confidence in the enduring prosperity of both the real economy and the markets.
"I'm not concerned about a little bit of volatility over three weeks," Treasury Secretary Scott Bessent stated, underscoring a calm approach to current market conditions.
In his conversation with CNBC, Bessent pointed out that stocks are considered a safe investment because of their long-term potential. He cautioned against focusing on short-term shifts which could render stocks risky.
"The reason stocks are a safe and great investment is because you're looking over the long term. If you start looking at micro horizons, stocks become very risky. So we are focused over the medium-, long-term," he explained.
Bessent also hinted at a potential easing of inflationary pressures, suggesting that such developments might bolster market confidence in the future.
"Maybe the inflation is getting under control and the market is going to have some confidence in that," he remarked.
While the major averages have moved toward correction territory, Bessent reiterated that the administration's strategy remains centered on fostering sustainable economic growth over time rather than reacting to immediate fluctuations. His remarks aim to reassure investors and stakeholders of a steady approach amid ongoing market volatility.