Treasury Secretary Yellen: "Not Concerned About Recent Stock Market Volatility... Focusing on Mid-to-Long Term"

# Treasury Secretary Vesent Dismisses Concerns Over Recent Market Volatility WASHINGTON—Scott Vesent, U.S. Secretary of Treasury, addressed concerns regarding the recent decline in the U.S. stock market, attributed to President Donald Trump's aggressive tariff policies, stating that he is “not worried about the small volatility of the past three weeks.” Speaking on CNBC on the 13th, Vesent emphasized the administration’s focus on the real economy. He explained, “The reason why stocks are a safe and great investment is because of the long-term perspective. If you look at it from micro horizons, stocks become very risky.” He further underscored, “We are focusing on the mid- and long-term. While I cannot predict whether the stock market will rise today or tomorrow, I can say that, with the implementation of appropriate policies, we will lay the foundation for real income growth, job creation, and sustained asset increase.” When asked if his recent comments about a “detox” period for the U.S. economy implied a recession, Vesent firmly denied this, stating, “Absolutely not. It doesn’t necessarily mean that. Our goal is a smooth transition.” Vesent referred to the recently released February Consumer Price Index (CPI), which indicated slower-than-expected inflation, noting, “Perhaps inflation is under control, and the market will gain some confidence.” Regarding President Trump's comments about imposing a 200% tariff on alcoholic beverages in response to the European Union’s (EU) retaliatory tariffs, Vesent responded, “I’m not sure if issues with one or two items from trade blocs like the EU will be a significant problem for the market.” Addressing concerns over the unpredictability of the ongoing tariff war between the U.S. and other countries, Vesent remarked, “That’s the nature of reciprocal tariffs. What President Trump demands from other countries is to eliminate their tariffs.” On the topic of the recent weakness in the U.S. dollar, Vesent commented, “After President Trump's election and the Republican landslide victory, the dollar's value increased significantly. So, a lot of it has been priced in, and an adjustment is natural. I think the market is taking a wait-and-see approach.” When asked about the potential for economic sanctions against Russia mentioned by President Trump, Vesent answered, “I’m not going to reveal my cards on TV.” He added, “The Biden administration imposed minimal sanctions due to concerns over domestic energy prices. The administration raised the sanctions from a level 3 to a level 6 right before leaving office, and we won’t hesitate to raise it to a 10.” soleco@yna.co.kr