Treasury Secretary's support for aggressive trade policies unsettles markets

Treasury Secretary Scott Bessent, initially anticipated by Wall Street to act as a moderating influence within the administration, has emerged as a staunch advocate for President Donald Trump's assertive trade agenda. Politico notes this shift has contributed to significant volatility in financial markets.

Bessent, a former hedge fund manager, has downplayed recent market downturns, asserting that corrections are "healthy" and preferable to unchecked market euphoria that could lead to financial crises. He maintains that—with appropriate tax policies, deregulation, and energy security measures—markets will thrive in the long-term. ​

Despite these reassurances, the S&P 500 has experienced a decline of more than 8 percent from its recent peak, reflecting investor concerns about the administration's trade policies and potential economic repercussions. ​