In a recent interview on CNBC’s “Squawk on the Street,” Treasury Secretary Scott Bessent emphasized that the Trump administration is prioritizing the long-term stability and growth of the U.S. economy rather than getting distracted by short-term market fluctuations.

Priority on the Real Economy

Bessent stated, “We’re focused on the real economy. Can we create an environment where there are long-term gains in the market and long-term gains for the American people?” He expressed confidence that short-term volatility, which he noted included the Dow Jones Industrial Average dropping more than 7% in a month due to tariff concerns, should not overshadow longer-term economic strategies.

Market Volatility and Economic Outlook

Despite the current market turmoil stemming from President Trump’s frequent tariff changes affecting countries like Canada, Mexico, and China, Bessent believes both the broader economy and financial markets will eventually benefit from the administration’s policies.

“If we put proper policies in place, it’s going to lay the groundwork for both real income gains and job gains and continued asset gains,” he asserted during the interview with CNBC’s Sara Eisen.

Inflation Trends and Market Confidence

The Bureau of Labor Statistics reported that wholesale inflation remained flat in February, which came as a relief amid worries that tariff policies could increase inflation. “Maybe the inflation is getting under control, and the market is going to have some confidence in that,” remarked Bessent, reflecting on the importance of stable inflation rates for market confidence.

A Call for Long-Term Investment Mindset

Bessent conveyed that the essence of stock investment lies in a long-term perspective, mentioning, “The reason stocks are a safe and great investment is because you’re looking over the long term. If you start looking at micro horizons, stocks become very risky.” This underscores the administration’s approach of focusing on sustainable economic policies rather than reacting to immediate market changes.

Conclusion

As markets continue to navigate volatility, the emphasis from Treasury Secretary Bessent on long-term strategies and managing inflation showcases the administration’s commitment to fostering a robust economic foundation for Americans.