The possibility of a recession in the US cannot be ruled out, according to Treasury Secretary Scott Bessent. He mentioned in an interview that aired on Sunday that while a recession is not guaranteed, there could be an adjustment in the economy.

But Bessent, speaking to NBC’s “Meet the Press,” ruled out the chance of a financial crisis.

Last week, the US stock markets experienced significant declines due to increasing uncertainties related to President Trump’s inconsistent policies, particularly his threats of imposing tariffs on major US trading partners.

When asked if he could ensure that there would be no recession during Trump’s presidency, Bessent emphasized that there are no certainties in economic predictions, highlighting the unpredictability exemplified by the unforeseen impacts of the COVID-19 pandemic.

Bessent said he was putting in robust policies that would be durable, saying the country needs to be weaned off what he called massive government spending.

Asked whether an adjustment could lead to a recession, Bessent said, “There is no reason that it has to.”

Bessent dismissed concerns about recent stock market falls, saying corrections were healthy and that markets “will do great” if the administration puts into place good tax policy, deregulation and energy security.

“We are going to have a transition, and we are not going to have a crisis,” he said.