Treasury Secretary Scott Bessent Says US Economic Detox Requires Market Corrections

- The U.S. Economy's Detox Phase, Heightened Recession Risks - Market Adjustments Needed to Address Government Spending Issues [Unblock Media] The U.S. economy is currently in a 'detox' phase. U.S. Treasury Secretary Scott Bassett described it as a natural adjustment process to resolve excessive government spending and economic imbalances. While acknowledging the potential risks of a recession, he emphasized that market adjustments are essential for restoring long-term economic stability. Bassett's comments come amid a week of stock market volatility. Ongoing trade tensions and fiscal policy debates have led to significant market turbulence. The concept of economic 'detox' suggests that financial markets are undergoing a necessary adjustment process, following a period of excessive liquidity and high government spending. According to the recently released February U.S. Consumer Price Index (CPI) report, the inflation rate stood at 2.8%, lower than the anticipated 2.9%. This can be interpreted as a positive sign that inflationary pressures are gradually easing. However, concerns about international trade disputes are heightening due to former President Donald Trump's new tariff proposals, leading to a more uncertain investment environment. The stock market has experienced significant fluctuations in response to these developments. Investors are trying to balance optimistic expectations of inflation cooling down with concerns that trade policies could disrupt global supply chains. Bassett remarked that although such market downturns may appear chaotic, they are crucial adjustments needed to maintain long-term growth and stability. The concept of economic 'detox' affects not only traditional financial markets but also the cryptocurrency market. Bitcoin and other digital assets have exhibited volatility as they evaluate the implications of changes in fiscal policy. Due to uncertainties surrounding U.S. monetary policy and potential regulatory changes, caution has increased among cryptocurrency investors. Market analysts suggest that short-term volatility may persist, but digital assets could benefit post-economic adjustment if inflation continues to decline and investors seek alternative value. Considering the current situation, financial market analysts are focusing on long-term economic growth prospects. While recession risks exist, the overall economic outlook suggests the U.S. is undergoing a realignment rather than a prolonged downturn, aiming to create a more sustainable economic environment. Considering Bassett's remarks and recent economic indicators, it appears that the U.S. economy is fostering long-term stability and growth through an extended adjustment process.