Scott Bessent says the American economy detox, but that does not mean that there will be a recession: “I don’t worry about a little volatility for three weeks”

• Trump’s tariffs caused the fears of recessionTilted appearances for inflation greater, sent supplies demolished and muffled feelings of consumer-but his administration claims to be focused on the long term.

S & P 500 lost 5 trillion dollars values ​​in just three weeks after entry The correct territory on Thursday for concern about the threat of President Trump. But Scott Bessent’s Treasury Secretary, who was the head of the Hedge Fund before his political appointment, was not concerned.

“I’m not worried about a little volatility over three weeks,” Bessent said CNBC Thursday. It is focused on long -term.

Bessent previously warned From the “detox” for the economy – and doubled during his interview on Thursday, claiming that the economy would always have to go. But when asked if it is a euphemism for a recession, the Besent said, “At all. It doesn’t have to be … our goal is to have a smooth transition.”

Still, Americans are worried. Consumer feelings have been birth 11% this month, the latest Michigan University A sense of feeling Posted on Friday discovered. This is commemorated, the mood of the third month in a row has been rejected. Consumer is moody 22% compared to December, a month after Trump was elected.

The world of finance is generally not sold, even after inflation cooled More than expected. Some economists suspect that inflation could increase again after Trump’s tariffs have time to enter into force. “Dizzying return and back the tariff is a big and unpredictable risk of inflation,” chief economist Bill Adams in Comeric Bank, she said Wealth in a statement after the data was published on Wednesday.

Investors are worried that long -term tariffs could stimulate greater inflation as they weighed economic growth, which would result in stagflation, Forever The analysts wrote in the note earlier this month. JPMORGAN economists also see greater inflation and slower growth, which is a consequence of Trump’s tariffs, according to Wednesday.

The reason why economists claim that the tariffs are pushing inflation is that when companies are forced to pay additional taxes, they are more difficult to transfer and higher consumers costs, which could result in reduced economic activity or slower growth.

Other economists and analysts are more concerned that they could fall into a recession now. Trump’s “changing stop on tariffs has been causing anxiety in financial markets for some time,” said George Vessey, a leading macro strategist in Conwari, in analysis earlier this week. “More recently, there has been an increase in concern that political uncertainty could push the American economy into a recession.”

Former Treasury Minister Larry Summers also said there is a real possibility a recession. He blamed what he called again, out of the tariff and put a recession of close to 50%.

But Beesent is not the only one in Trump’s administration that cared for concern about the economy, while she decided not to exclude the recession. When the Vice -President JD Vance is on Thursday an interview if he can exclude a recession, he responsible: “You can never predict the future, but I think the basics of the economy are quite strong at the moment, but we will see how this is going on.” Vance, like Beesent, said the administration focused on a long path.

IN interview On Sunday, Trump also did not exclude the recession, but instead said that there would be a “transition period” – what would be what would happen in the week ahead. From Friday at the time of writing, the S&P 500 has been reduced by 8.17%, To redeem is a drop 7.20%and technologically heavy Nasdaq is a drop by 11.76%and all in the last month, despite the modest Friday Rally. 

This story is originally displayed on Fortune.com