Bessent: Market Corrections Are Expected, Indicating a Tougher Stance on the ‘Trump Put’

Treasury Secretary Bessent: Market Corrections Are Routine, Signaling a Higher Bar for ‘Trump Put’ Intervention

U.S. Treasury Secretary Scott Bessent has dismissed concerns over recent market volatility, calling corrections a normal part of financial cycles, while hinting that the “Trump put” may have a higher pain threshold than investors anticipate.

Bessent: Market Swings Are Nothing Unusual

Speaking to Bloomberg on Sunday, Bessent suggested that market pullbacks should be expected and that the Trump administration is focused on long-term economic growth rather than reacting to short-term stock movements.

“Market corrections happen, and they are necessary for a healthy financial system,” Bessent said. “We remain committed to policies that drive sustainable growth—strong energy production, smart deregulation, and lower taxes. Markets will reflect that over time.”

His remarks suggest that the administration is not rushing to intervene despite recent weakness in equities and digital assets, signaling that investors may need to endure greater volatility before any policy support kicks in.

Stocks and Crypto Experience Sharp Declines

The Nasdaq and S&P 500 have dipped into correction territory, down over 10% from their February peaks, as concerns over tariffs and inflation weigh on investor sentiment.

Meanwhile, Bitcoin (BTC) has retraced nearly 25% from its all-time high of $109K, with market watchers speculating about the impact of Trump’s digital asset policies. Unlike previous cycles where government stimulus propped up risk assets, this time, there may be less urgency to act.

Will the Fed or Treasury Step In?

Bessent’s comments align with Federal Reserve Chair Jerome Powell’s cautious stance, as the Fed has indicated it is in no rush to cut interest rates despite the downturn in financial markets.

Investors now await Wednesday’s Fed meeting for further insights into how policymakers will balance inflation concerns, economic growth, and financial stability. If the “Trump put” has indeed been recalibrated to tolerate greater market pain, traders may need to adjust their expectations accordingly.