Treasury Secretary Scott Bessent said Thursday that his previous comments about a “detox period” for the U.S. economy did not mean that a recession was necessary.
“Not at all. Doesn’t have to be, because it will depend on how quickly the baton gets handed off. Our goal is to have a smooth transition,” Bessent said on CNBC’s “Squawk on the Street.”
The comments come after Bessent said Friday that the U.S. would undergo a transition period as the federal government tries to cut spending, including laying off public sector workers. Bessent on Thursday reiterated his view that current levels of government spending are “unsustainable.”
“We have excess employment in the government, and those people can be moved to the private sector,” Bessent said.
The Treasury head’s comments last week came as several recent economic indicators have pointed to weakening growth. Job growth was slower than expected in February, and surveys of consumers and small business have shown a decline in confidence. […]
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