Scott Bessent, the US Treasury Secretary, with Donald Trump at the White House - Elizabeth Frantz/Reuters

Despite a significant stock market drop of $6 trillion due to President Trump's trade war, the US Treasury Secretary, Scott Bessent, reassured that there is no imminent recession in the United States. Bessent highlighted factors such as strong job numbers, low borrowing rates, and decreasing oil prices as indicators to support his stance that the American economy will remain resilient.

While concerns have arisen over the impact of Trump's tariffs on global trade and stock markets, Bessent emphasized that short-term market reactions are unpredictable and that a recession may not be inevitable. President Trump also encouraged Americans to remain steadfast during this uncertain period, following JP Morgan's prediction that tariffs could lead to a US economic recession this year.

Despite the pessimistic forecast by JP Morgan, which projected a decline in US GDP growth and increased likelihood of a global recession following the market volatility initiated by Trump's tariff policies, Bessent remained confident in the long-term stability of the stock market. He attributed the recent market fluctuations to an adjustment process and likened them to past economic challenges that were ultimately overcome through perseverance and consistent policy measures.

Scott Bessent, a seasoned investor known in UK financial circles, has a history of successful financial predictions and strategic investments, including leading a profitable bet against the pound during Black Wednesday while working at George Soros's hedge fund.