On Sunday, Treasury Secretary Scott Bessent alleviated Americans’ worries regarding a potential recession and their retirement savings, asserting that President Donald Trump and his administration are “establishing the long-term economic foundations for prosperity.”
In an interview on NBC News’ “Meet the Press,” Bessent characterized the belief that nearing retirees may hesitate to retire due to falling retirement savings from the stock market downturn as a “false narrative.”
“I believe that’s a misguided perception,” he told host Kristen Welker. “Americans who are ready to retire now, the ones who have diligently saved over the years, generally don’t focus on daily fluctuations.”
“In reality, most Americans don’t have all their assets in the market,” Bessent emphasized. “People adopt a long-term perspective… the stock market is regarded as a sound investment because it thrives over the long haul. Observing it daily or weekly can be quite volatile. However, in the long term, it proves to be beneficial.”
Later on the show, Senator Adam Schiff, D-Calif., criticized Trump for “setting retirement savings ablaze” while he indulged in golf at his Mar-a-Lago club in Florida.
“He’s damaging our economy. Many have seen their retirement savings consumed by flames, while he remains on the golf course. This image may become the most defining illustration of the Trump presidency: the president out on the golf course while people’s retirement funds are burning,” Schiff remarked to Welker.
The California senator also directly challenged Bessent’s statements, referencing both his and Trump’s personal wealth.
“The Treasury secretary claims people aren’t paying attention to their retirement savings—perhaps he doesn’t need to worry. He has wealth, and so does the president. However, the feedback I’m receiving from Californians—those who recently retired or are on the verge of retirement—is that they are genuinely frightened,” Schiff stated.
Bessent expressed that he was not worried about the stock market’s negative response to Trump’s recent announcement on imposing tariffs of up to 54% on the U.S.’s largest trading partners.
“The market has consistently underestimated Donald Trump,” Bessent told Welker.
He later elaborated, “It’s uncertain how the market will respond over a day or week. Our focus is on establishing long-term economic foundations for prosperity; the previous administration had us on the path toward financial disaster.”
Post Trump’s tariff announcement, the U.S. stock market experienced a sharp decline, with the Nasdaq, Dow Jones Industrial Average, and S&P 500 registering losses not seen since the onset of the Covid pandemic.
Agriculture Secretary Brooke Rollins also downplayed the market’s reactions during an interview with UJ, stating, “We anticipated some uncertainty.”
“To take the events from Thursday or Friday and declare, ‘The world is ending. The markets are collapsing,’ is premature. The markets are merely adjusting,” Rollins explained.
In response to the market downturn, Trump has defended his tariff strategy, encouraging consumers and investors to “hang tough.”
“We are revitalizing jobs and businesses like never before. Already, over FIVE TRILLION DOLLARS OF INVESTMENT has been committed, and it’s increasing rapidly! THIS IS AN ECONOMIC REVOLUTION, AND WE WILL SUCCEED. STAY STRONG, it may be challenging, but the end result will be historic,” he tweeted on Truth Social.
When asked how long Americans might face this economic instability and what it means to “hang tough,” Bessent indicated that the Trump administration would “remain committed” to enforcing tariffs and reducing inflation, though he did not specify a timeline.
“This is a transitional phase,” he remarked. “Similar to President [Ronald] Reagan’s approach in conquering high inflation and overcoming the malaise of [President Jimmy] Carter, we experienced some turbulence then, but we persisted, and we will persevere now.”
Senator James Lankford, R-Okla., reiterated Bessent’s viewpoint, stating to Welker, “Realigning the economy to enhance manufacturing within the United States is beneficial for us in the long run. It’s indisputable that short-term tariffs lead to higher prices. As Secretary Bessent mentioned, this is a one-time adjustment; it’s a reality we must address.”
Bessent remarked that the previous “unsustainable system” of trade contributed to the current economic uncertainties, explaining to Welker, “This situation has been years in the making.”
“Our trading partners have exploited our weaknesses, evident in the substantial trade surpluses and considerable budget deficits,” the secretary asserted.
In an interview with ABC’s “This Week,” Kevin Hassett, director of the National Economic Council, also played down worries regarding the tariffs’ effects on consumers, noting that foreign countries are shouldering much of the burden.
“If U.S. consumers are incurring these costs, there’s no motivation for the countries to be upset. The reality is, these nations are responding with anger and retaliatory measures,” Hassett explained.
He mentioned that several nations are approaching the U.S. to seek solutions to the elevated tariffs.
“They’re doing this since they recognize that they bear most of the tariff impact. Therefore, I doubt consumers in the U.S. will feel a significant effect,” Hassett added.
Later in the interview, he conceded that “yes, there might be some increase in prices,” but argued that the previous tariff landscape had resulted in a decline in real wages for Americans.
“If inexpensive goods were the solution, if cheap items could enhance America’s real wages and overall welfare, we would have seen real incomes rise,” Hassett explained to ABC. “But in reality, they have decreased because wage drops exceeded price reductions. Thus, while we enjoyed lower prices at stores, we also experienced a significant loss of jobs.”
