US Treasury Secretary Scott Bessent said on Sunday that the Trump administration is doing everything it can to prevent a financial crisis caused by the massive government spending of the past few years. He stressed that the current fiscal situation is "unsustainable" and the government is undergoing an economic reset to ensure long-term stability.

Will the government's massive spending cause a financial crisis?

Bessent said on the NBC program 'Meet the Press' that if no action is taken, the US will face a serious financial crisis. "I can guarantee you that if we continue to maintain this level of spending, the economy will eventually collapse. This is unsustainable."

Bessent added that he has studied and taught the history of financial crises, and believes the current economic strategy is to put the US back on a sustainable development path.

Trump establishes the 'Department of Government Efficiency', promoting fiscal reform

Since taking office, Trump has made improving the fiscal situation one of his key policy priorities. He has established a new agency called the 'Department of Government Efficiency' and appointed Tesla and SpaceX CEO Elon Musk to lead the department, responsible for implementing federal agency downsizing plans and early retirement incentive measures to reduce government spending.

However, the US fiscal situation has not improved. In the first month of Trump's presidency, the US federal budget deficit has already exceeded $1 trillion, highlighting the continued severe fiscal pressure.

The US economy still faces recession risks

Although the government is actively taking measures, Bessent admits that he cannot guarantee the US will not enter a recession. He pointed out that market volatility has increased, partly due to the Trump administration's tariff policies, which have raised market concerns about inflation and economic slowdown. Recently, the US stock market has experienced violent fluctuations, with the S&P 500 index down 10% from its February high, officially entering a technical correction, and market volatility has risen sharply.

Bessent: Market correction is a healthy phenomenon, and the long-term economic outlook remains positive

Although the market has been volatile in the short term, Bessent believes this kind of correction is a normal phenomenon. He emphasized that the stock market should not be in a "straight-up" state, as this could lead to an economic bubble and ultimately a financial crisis. "I've been in the investment business for 35 years, and I can tell you that market corrections are healthy, this is a normal phenomenon. The most unhealthy situation is when the market continues to rise, entering a frenzy state. This is exactly the reason why we were unable to step on the brakes in 2006-2007, ultimately leading to the 2008 financial crisis."

Bessent further stated that as long as the government can implement good tax policies, relax regulations, and ensure energy security, the market will have room for long-term growth. "I'm not worried about short-term market volatility. As long as our policies are correct, the market will remain strong in the long run."

Can the Trump administration stabilize the economy? It remains to be observed

Although the Trump administration is actively promoting fiscal reform, the US debt and deficit problems remain severe, and the uncertainty of trade policies has caused market unease, making the economic outlook still uncertain. Bessent believes that short-term market volatility is inevitable, but as long as the policy direction is correct, the long-term growth potential remains. In the future, whether the US can successfully overcome the fiscal crisis still needs further observation of the government's policy effects.