US Treasury Minister Scott Bessent argued that the country’s current financial policy has entered a “scary yolu path, and that the debt burden could have negative effects on economic stability. Minister, drawing attention to the upcoming economic breaking point, as a result of the loss of confidence in markets, the narrowing of credit opportunities can lead to a sudden recession of the economy, he said.
US economy
Bessent pointed out the risk of the federal government’s debt levels to become unsustainable. He stressed that a scenario that can lead to economic recession may occur if the markets react suddenly. According to AMC reports, as of the end of 2024, the US debt/GDP rate is reported to be at 124 percent.
Scott Bessent: “The economy may come to a sudden stop in the stopping of loan flow and the loss of market confidence. In this case, we can say that the current level of debt is inevitable.
Although Trump points to the tariffs as the way to get rid of this nightmare, it does not seem to have much solution in the long run for increasing debt.
Digital Assets Policy
Before taking office, Bessent, who partner in Soros Fund Management, also announced that he was opposed to the Central Bank’s Digital Currency (CBDC) application. Bessent, who argues that digital assets should be the responsibility of the private sector, is worried that the implementation of the CBDC may cause weakness.
Scott Bessent: “Digital assets must belong to the field of the private sector. Instead of a strong option, such as CBDC, alternatives can be considered instead of existing assets.”
The blocking of the CBDC, which is one of Trump’s election promises, is fed by the concern that the Central Bank’s digital currency will increase. During the Biden administration, the two parties pointed out the risks of supervision and control of China’s digital Yuan.
The effects of the incident on economic policies will be closely monitored in the future. Investors and segments interested in the economy may aim to shape their planning for the future, taking into account these explanations.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
