U.S. Treasury Secretary Scott Bessent appeared on CBS News’ Face the Nation show and gave a notable assessment of the U.S. economy.
Minister Bessent said the economy was “in better shape than expected” and expected real GDP growth to be 3% by the end of 2025. Noting President Donald Trump’s displeasure with media criticism, the minister said “real incomes have increased by about 1%” and insisted the economic outlook was brighter than previously thought.
Bessent said the holiday season was strong and the price increases that President Trump warned of months ago have not materialized. However, when asked about criticism of rising toy prices, he said inflation was mainly driven by the service sector and that the rise in prices of imported goods was lower.
When reminded that polls show 60% of Americans believe Trump’s inflation rhetoric is better than it actually is, and that the president’s approval rating on the economy has fallen to 36%, Bessent suggested this is due to media rhetoric. “Purchasing power has two components: inflation and real income. Real income is increasing,” he said, arguing that the Biden administration is inheriting a “legacy of embedded inflation.”
Bessent said energy and regulatory deficiencies fueled inflation under the Biden administration. He pointed out that, according to his calculations, the “ordinary person index”, which reflects the working class, was lower than the general inflation rate for the first time. He added that he expects inflation to fall even more sharply in 2026.
Asked about criticism of food prices, Bessent acknowledged that food prices remain high, but argued that President Trump’s launch of a “price gouging investigation” into soaring beef prices was inconsistent with the Biden administration’s policies. “They didn’t do it right. We’ll do it right,” he said.
Bessent also touched on the agricultural agreement with China, which has committed to buying 12.5 million tonnes of soybeans, and said prices have increased by 12-15% since the deal. But he said China had no intention of accelerating its purchases and was proceeding according to the schedule set out in the agreement. When reminded that the Department of Agriculture was preparing “bridging payments” for short-term support to farmers, Bessent explained that this was due to delays caused by China using farmers as leverage in negotiations.
The program also featured a newly announced “Trump Account.” Under the plan, the federal government would open a $1,000 investment account for every U.S. citizen born between 2025 and 2028. These accounts are invested in low-cost index funds, and children can use the money or save for retirement when they turn 18.
*This is not investment advice.
