US Treasury chief says economic 'detox' does not have to be a recession

WASHINGTON, March 13 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Thursday he was not concerned about recent Wall Street volatility, telling CNBC in an interview that the Trump administration was focused on medium- and long-term gains for the market and Americans.

Bessent, who last week said the nation's economy faces a "detox" as it shifted from government spending to the private sector, said such a transition did not necessarily mean it would enter a recession even as U.S. President Donald Trump has not ruled it out.

Asked if such a detox period was synonymous with a recession, Bessent said: "Not at all. It doesn't have to be, because it will depend on how quickly the baton gets handed off. Our goal is to have a smooth transition."

U.S. markets have been roiled over Trump's unpredictable trade policies , including on tariffs , as investors grapple with uncertainty and escalating conflicts with trading partners that could spur inflation and hamper growth. On Thursday, main U.S. stock indexes again slipped .

"We're focused on the real economy," Bessent told CNBC. "If you start looking at micro horizon, stocks become very risky. So we are focused over the medium, long-term."

Investors are also watching whether Congress will pass a continuing resolution to keep the federal government operating past Friday's deadline, when spending expires. Bessent said failure to pass a spending bill would be "incredibly disruptive."