U.S. Economic Detox: Transitioning from Public to Private Spending

U.S. Treasury Secretary Scott Bessent discusses the transition from public to private spending, calling it a necessary 'detox period' to achieve sustainable economic balance. Bessent highlights deregulation's role in fostering private-sector growth and maintaining a strong dollar, while addressing tariffs and tax cuts' fiscal implications.

The U.S. economy is set for a new phase as it transitions from public to private spending, a shift termed a 'detox period' by Treasury Secretary Scott Bessent. According to Bessent, this adjustment is necessary to achieve a more balanced and sustainable economic state.

Appearing on CNBC, Bessent expressed confidence that the shift won't cause significant economic distress, thanks to deregulation efforts by the Trump administration aimed at bolstering private-sector growth. He emphasized the importance of sound regulation to energize the banking sector, encouraging banks to extend loans to private enterprises.

Bessent's remarks were made before the release of U.S. jobs data, which showed a slight increase in February payrolls but also a marginal rise in the unemployment rate to 4.1% from 4.0%. He defended tariffs as a necessary component given global economic imbalances, despite potential implications for tax revenue and deficits.

(With inputs from agencies.)