Treasury Secretary Scott Bessent to anyone who thinks the market crashes are Trump's fault

Treasury Secretary Scott Bessent to Those Blaming Trump for Market Crash: "The Problem Started with China's Deepseek AI"

Amid recent stock market turmoil, Treasury Secretary Scott Bessent has stepped forward to dismiss any claims that former President Donald Trump is to blame for the downturn. In exclusive remarks, Bessent asserted that the market drop is not tied to Trump's economic policies but rather to the impact of Chinese AI firm Deepseek's announcement.

Why Did the "MAG SEVEN" Fall?

Bessent explained that over the past 18 months, the so-called "MAG SEVEN" — a group of leading tech stocks — had driven the market with exceptional performance. However, the recent advancements in AI announced by China's Deepseek reportedly delivered a "reality check" to investors. "This isn't a macroeconomic issue caused by domestic policies but a sector-specific adjustment," he stated.

U.S. Still Leads, But Chinese Competition Looms

While Bessent reiterated his confidence that the U.S. will maintain its AI leadership, he acknowledged that China's progress has created uncertainty. "AI-related stocks began to slide, and that dragged down the market," he noted. The Treasury Secretary emphasized that, while the impact was significant, this is not a systemic crisis but a correction in a key sector.

Expert Analysis: What’s Next for the Market?

With decades of Wall Street experience, Bessent offered a technical analysis of the current scenario. "If I were to assess this from my old investor perspective, I’d say this is more of a 'MAG SEVEN' problem than a broad collapse," he said. He also dismissed claims that current volatility signals a recession, attributing it instead to geopolitical and technological factors.

Bottom Line: Don’t Blame Trump

Bessent concluded with a clear message: "Those trying to pin the market crash on former President Trump are ignoring the real triggers." In his view, global tech competition — particularly with China — is the key factor investors should watch in the coming months.

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