U.S. Treasury Secretary Scott Bessent has said that there are "no guarantees" that there will not be a recession in the United States, although there could be an adjustment.
But Bessent, speaking to NBC's "Meet the Press" aired on Sunday, ruled out the chance of a financial crisis.
U.S. stock markets closed down sharply last week amid mounting uncertainties arising from President Donald Trump's frequently shifting policies, including tariff threats against the biggest U.S. trading partners.
Asked whether he could guarantee there would be no recession while Trump was in power, Bessent replied: "There are no guarantees. Who would have predicted COVID?"
Bessent said he was putting in robust policies that would be durable, saying the country needs to be weaned off what he called massive government spending.
Asked whether an adjustment could lead to a recession, Bessent said, "There is no reason that it has to."
Bessent dismissed concerns about recent stock market falls, saying corrections were healthy and that markets "will do great" if the administration puts into place good tax policy, deregulation and energy security.
"We are going to have a transition, and we are not going to have a crisis," he said.
Commerce Secretary Howard Lutnick has said a recession would be "worth it" to get Trump's economic policies in place, while Bessent has spoken of a coming period of "detox" and Trump himself says the economy is in "transition."
Asked if he could rule out a recession last week, Vice President JD Vance said you can never predict the future and suggested the economy is strong.
JP Morgan's chief global economist, Bruce Kasman, last week said there is about a 40% chance of a U.S. recession this year and a risk of lasting damage to the country's standing as an investment destination if the administration undermines trust in U.S. governance.
"Where we stand now is with a heightened concern about the U.S. economy," Kasman told reporters in Singapore on Wednesday.
