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Treasury Secretary Scott Bessent said on Sunday that the United States was on the brink of a financial crisis due to years of unchecked government spending, and the Trump administration's policies are aimed at preventing it.

Speaking on NBC's "Meet the Press," Bessent emphasized that the country's fiscal path was unsustainable without change.

"I could guarantee we would have had a financial crisis," Bessent stated. "I've studied it, I've taught it, and if we had kept up at these spending levels, everything was unsustainable. We are resetting, and we are putting things on a sustainable path."

Bessent's comments come after years of rising government spending and a record deficit under President Donald Trump.

Although the administration has made efforts to address these issues, such as the creation of the Department of Government Efficiency, the problem has worsened.

According to CNBC, the US budget shortfall surpassed $1 trillion in February 2017, highlighting the severity of the fiscal situation.

Economic Transition Won't Necessarily Lead to Recession, Bessent Asserts

Despite efforts to curb spending, Bessent acknowledged that there are no guarantees the country will avoid a recession.

He mentioned that economic uncertainty remains high, especially as tariffs and trade policies, including those targeting major US trading partners, have caused volatility in the market.

The S&P 500 recently dropped into correction territory, down 10% from its high in February, USA Today said.

However, Bessent remained optimistic about the long-term economic outlook. "Corrections are healthy. They're normal," he said. "What's not healthy is straight up; that's how you get a financial crisis."

He added that, with the right economic policies in place—such as tax reform, deregulation, and energy security—the US markets will thrive in the long run.

Though consumer confidence has dropped in recent months, with 54% of voters disapproving of Trump's economic handling, Bessent argued that this does not necessarily indicate a looming recession. "I can tell you that if we kept on this track, what I could guarantee is we would have had a financial crisis," he reiterated.

Bessent also stated that while predicting a recession is difficult, there is no reason to believe the current economic transition will result in one. "There's no reason that an adjustment period has to mean a recession," he added.

The Treasury Secretary's remarks come amid widespread uncertainty about the US economy.

Although JP Morgan's chief economist has predicted a 40% chance of a recession in 2025, both Bessent and President Trump have refrained from making firm predictions about the future.