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‘Corrections are healthy,’ Bessent says, dismissing market worries after a dismal week - MarketWatch

1. Treasury Secretary Bessent believes market corrections are normal and healthy. 2. DJIA fell 3.1% last week, its worst since March 2023. 3. Bessent cites inflation and job cuts as current market concerns. 4. He suggests a transition, rejecting 'guarantees' against recession. 5. Tariff policies are anticipated to stabilize pricing, aiding market recovery.

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FAQ

Why Neutral?

While Bessent's view is generally optimistic, market concerns remain, particularly about inflation and job cuts, which can weaken DJIA performance. Historical instances show market corrections can lead to instability, making the current outlook cautious.

How important is it?

The article discusses key economic topics impacting investor sentiment and market behavior, which can directly influence the DJIA's trajectory.

Why Short Term?

The immediate concerns of inflation and job cuts suggest volatility in the short-term perspective. Events around tariffs and potential recession adjustments will unfold soon, influencing DJIA movements significantly.

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