On Sunday, the United States Secretary of the United States, Scott Besent, described the corrections of the asset market as healthy, suggesting greater tolerance to pain before the long -awaited political support or the so -called ‘Trump put “for the market is enacted.
“I have been in the investment business for 35 years, and I can tell you that corrections are healthy, they are normal,” Besent said Sunday at the NBC press encounter, according to Bloomberg. “I am not worried about the markets. In the long term, if we establish a good fiscal policy in its place, deregulation and energy security, the markets will work very well.”
Besent’s comment contradicts the popular belief that the Trump administration will quickly make any fire derived from the political movements of the administration, particularly commercial tariffs. President Donald Trump also recently clarified his position, saying that he is not looking at the stock market.
The technological index of Wall Street, Nasdaq, and the S&P 500 entered the correction last week, falling more than 10% of its February maximums predominantly in concerns that Trump’s tariffs could stop economic growth and lead to difficult inflation.
Bitcoin (BTC) has also received a beating, almost 25% from the highest records exceeding $ 109K in January, according to the data of Coindesk indices, tracking the risk on Wall Street and digesting disappointment due to the absence of new BTC purchases under the Trump strategic digital asset reserve plan.
The risk has accelerated the expectations of the government’s political support or the Federal Reserve (FED), particularly in the cryptographic community.
However, Besent takes that it can take longer to manifest or require a more significant market decrease before measures are taken. The secretary of the Treasury said last month that the Trump administration focuses on reducing the 10 -year treasure note, which influences most long -term loans in the economy.
Meanwhile, the president of the FED, Jerome Powell, and his colleagues emphasized earlier this month that they are observing to see the “net effects” of Trump’s policies in the economy and are not in a hurry to reduce rates.
The officials will meet for a rate review this week, with the decision due to Wednesday.
