Bessent Sees Corrections as Routine, Signaling a More Resilient ‘Trump Put’ Strategy

Treasury Secretary Bessent Sees Corrections as Routine, Suggests ‘Trump Put’ Has a Higher Threshold

U.S. Treasury Secretary Scott Bessent has dismissed concerns over recent market declines, calling corrections a natural occurrence, while signaling that the “Trump put” may require deeper losses before triggering government intervention.

Market Pullbacks Are Expected, Says Bessent

Speaking to Bloomberg on Sunday, Bessent downplayed the significance of recent stock and crypto sell-offs, emphasizing that short-term volatility is part of a functioning financial system.

“Corrections happen, and they’re necessary for markets to reset,” Bessent stated. “Our priority is ensuring long-term economic stability through strong fiscal policies—not reacting to every market dip.”

His remarks contrast with expectations from some investors who anticipate swift intervention from the Trump administration to stabilize markets. Instead, Bessent’s stance suggests that policymakers may tolerate more volatility before stepping in.

Stocks and Bitcoin Face Selling Pressure

The S&P 500 and Nasdaq have each dropped over 10% from their highs, while Bitcoin (BTC) has fallen 25% from its record peak of $109K, amid concerns over tariffs, inflation, and shifting government priorities.

Despite previous speculation that Trump’s administration might provide policy support for risk assets, recent developments indicate that investors may need to endure more pain before any intervention materializes.

Eyes on the Fed’s Next Move

Bessent’s stance aligns with recent comments from Federal Reserve Chair Jerome Powell, who has reiterated that the Fed is not rushing to cut interest rates despite growing market pressure.

With the Fed’s next policy meeting set for Wednesday, traders are watching closely for signals on whether monetary authorities will adjust their stance—or if they, like Bessent, believe that markets must weather volatility without immediate intervention.

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