Treasury Secretary Bessent: Private sector has been in "recession"

• "This is about more than just reducing the fiscal deficit," Bessent said. "Government overspending brings distortions in the economy that inhibit dynamism and limit growth to a designated subset of favorite sectors."

Zoom out: "Our goal is to re-privatize the economy," Bessent said Tuesday at an event hosted by the Australian embassy.

• "The previous administration's over-reliance on excessive government spending and overbearing regulation left us with an economy that may have exhibited some reasonable metrics but ultimately was brittle underneath," Bessent added.
• He said that the private sector has been in a recession, with jobs growth concentrated in government, education and health care sectors.

Reality check: As of January, the private sector was still adding jobs at a healthy rate, though the pace of gains in 2024 slowed from the prior year.

• The private sector added an average of 130,000 jobs in 2024, a downshift from the 155,000 monthly average the prior year.

What to watch: Bessent said he does not know the correct "size" of the government. "We'll know it when we get there," he said.

• "Let me emphasize: It is the Department of Government Efficiency, not the Department of Government Elimination," Bessent said.

Editor's Note: This story has been updated with additional comment from Bessent.