Fox Host Grills Trump Treasury Sec. for Downplaying Recession Odds

A recession is all perspective, according to Treasury Secretary Scott Bessent.

The economic adviser attempted to convince Fox Business’s Maria Bartiromo Wednesday that business executives she spoke with weren’t actually worried about the future under Donald Trump’s sweeping tariff plan, but rather had been lamenting about the past.

“I spoke with one CEO over the weekend; he said we are already in a recession,” Bartiromo said. “So how do you deal with that as you are trying to implement all these new policies, like deregulation, when you’ve got the market expecting a sharp slowdown in economic activity, Sir?”

“Well, Maria, I think what the CEO may have alluded to, and I said it in the past, that the manufacturing sector under the previous administration was in a recession,” Bessent said.

“So what we’re doing is what I call ‘reprivatizing’ the economy,” he continued. “We are also getting the deficit under control, rightsizing the federal workforce, and then on the other side we are going to re-lever the private sector through smart, safe, and sound bank deregulation. And then, as this CEO said, they can come out of recession because the—I expect that long-term interest rates should come down as we get the budget under control, inflation under control, energy prices come down, and then the private sector will have room to grow.”

But Republicans are not getting the deficit under control. Instead, their efforts to extend Donald Trump’s 2017 tax plan are expected to tack on an extra $5.5 trillion in debt, plus $1.3 trillion in interest.

And finance experts don’t predict good things should the White House push to further deregulate banks. Trump’s previous efforts to strip safeguards from regional banks during his first term created an environment that collapsed several regional banks in 2023, further consolidating assets under national umbrellas.

“The repercussions here will be wide-reaching, as the global financial system is tightly interconnected,” argued Florence School of Banking and Finance director Thorsten Beck in an op-ed for Politico Tuesday. “When Washington weakens its financial guardrails, others feel pressured to follow suit to stay ‘competitive.’ This sets off a ‘race to the bottom,’ which then risks unleashing the kind of instability last seen in 2008.”

But considering the fragile state of the current market—which is gripped by high volatility, struggling supply chains, conflicts in Eastern Europe and the Middle East, record levels of debt, and seemingly endless reciprocal tariffs that have pushed the U.S. economy to the brink of a recession—“this time, the fallout could be far worse,” according to Beck.