U.S. Treasury Secretary Scott Bessent on Thursday said that the Donald Trump administration remains focused on fostering long-term economic growth rather than reacting to short-term market volatility, despite a recent 10% drop in stocks from their highs.

What Happened: Speaking to CNBC on Thursday, Bessent addressed concerns over a turbulent market week, with losses exceeding 3.5%, emphasizing that the administration's priority is creating conditions for sustained gains in jobs, incomes and assets.

His comments come amid heightened economic uncertainty, as reflected in Polymarket data showing varied investor sentiment on potential U.S. economic challenges and international trade tensions.

Bessent, drawing on his 35 years in markets, downplayed the volatility as typical unwinding of positions.

"I'm not concerned about a little bit of volatility over three weeks, because if you look over the long term, stocks are a safe and great investment," he said, noting that 62% of Americans hold stocks, the highest in nearly 20 years.

He stressed the administration's focus on medium- to long-term policies, saying, "If we put proper policies in place, it's going to lay the groundwork for both real income gains and job gains and continued asset gains."

Polymarket data aligns with this uncertainty, with a 40% chance of a U.S. recession in 2025, up 21% since January, on $710,887 in trading volume.

Adding to economic pressures, Representative Morgan McGarvey, co-chair of the House Bourbon Caucus, warned of severe impacts from proposed EU tariffs on American whiskey, set to rise to 50%.

Speaking to CNN, McGarvey described the tariffs as "completely devastating" for Kentucky, which produces 95% of the world's bourbon. He referenced a 25% EU tariff during Trump's first term that halved bourbon exports, costing the industry hundreds of millions.

"This is not just cost, this is jobs-from the farmers who put the corn in the ground to the union workers who bottle it," McGarvey said.

Polymarket data underscores this concern, with an 87% chance the EU will impose tariffs on the U.S. before May, up 16% since February.

Further complicating the economic outlook, Polymarket indicates a 52% chance of a U.S. government shutdown in 2025, up 28% since January.

These figures highlight investor fears of policy gridlock and trade disputes, contrasting with Bessent's focus on long-term stability over short-term market fluctuations.