Treasury Secretary Scott Bessent, who previously worked as a hedge fund manager, expressed confidence in the recent market downturn during efforts to reshape the US economic policies. Bessent, with 35 years of investment experience, stated that market corrections are normal and not a cause for concern. He emphasized that good tax policies, deregulation, and energy security will lead to positive market performance in the long run.

The recent market volatility, triggered by concerns over the economic impact of the Trump administration's actions on tariffs, immigration, and government spending cuts, led to a market correction. Despite a strong market rebound on Friday, early Asian trading hours on Monday indicated fragile market sentiment.

Bessent, who previously led Key Square Group before joining the administration, highlighted that policies focusing on affordability, moderate inflation, and the American Dream will ultimately benefit the public. As the Trump administration's tariff policies expand, consumers fear increased costs due to extra duties on various goods. This, combined with potential inflation risks, could lead to a decrease in discretionary spending.

Bessent stressed that the American Dream involves more than just buying inexpensive goods from abroad; it also includes homeownership, financial stability, and opportunities for children to succeed. Amid growing concerns about the US economy, the Federal Reserve officials are set to meet. Fed Chair Jerome Powell indicated that the central bank is not rushing to make rate cuts, but concerns about uncertainty and emerging risks will likely be addressed.

The Trump administration has downplayed the significance of short-term market fluctuations, with the President stating that he is not focused on the stock market. This shift in attitude indicates a departure from the previous approach of prioritizing investor interests.