Bessent Predicts Inflation Decline in Early 2025, Commits to Affordability Solutions
U.S. Treasury Secretary Scott Bessent joins ‘Mornings with Maria’ to warn that the SCOTUS ruling could impact national security, discuss President Donald Trump’s Fed chair search, and outline how tariffs, tax refunds, and growth plans will shape 2026.
U.S. Treasury Secretary Scott Bessent recently addressed the ongoing economic challenges facing American families, particularly the lingering effects of Biden-era inflation. He expressed optimism that real affordability relief is on the horizon, predicting significant improvements in everyday prices, wages, and housing as the economy gears up for a “bountiful” 2026.
“We should think that 2025 was setting the table. 2026 is going to be a bountiful year — if the Democrats don’t shut down the government,” Bessent stated during an exclusive interview on “Mornings with Maria” Tuesday.
He emphasized that substantial tax refunds are expected for working American households in the first quarter, which will lead to changes in withholding and an increase in real incomes. “I am very optimistic for working Americans, for job growth, and for capital formation. But we cannot let the Democrats shut down the government,” he added.
Bessent pointed out the historical context of government shutdowns, noting, “We have the longest government shutdown in history, which was a hit to GDP and slowed things down. We’re still going to finish the year probably [with] 3.5% GDP growth, which is incredible.”
TRUMP INSISTS PRICES ARE ‘COMING DOWN,’ BLAMES BIDEN — BUT VOTERS SAY THEY’RE STILL GETTING SQUEEZED
In a broader analysis, Bessent argued that the Trump administration’s tax, energy, and immigration policies are beginning to reverse what he termed the “worst inflation in 50 years.” He highlighted falling rents, lower energy prices, and a surge in capital investment as early indicators of relief.
Treasury Secretary Bessent discussed his economic outlook for 2026 on “Mornings with Maria” Dec. 16, 2025. (FOXBusiness)
Bessent elaborated on affordability, stating, “Affordability has two components … there [is] constraining spending and then upping revenues, which is what we’re doing. I suspect that we are going to see a substantial drop in inflation in the first six months of next year.”
He noted that rents are decreasing, attributing this trend to the enforcement of immigration policies. “The story that the Biden administration doesn’t want to talk about — the mass, unfettered immigration, they have pushed up rents, especially for working Americans … So President Trump, by enforcing the border, sending home more than 2 million illegals, we’re now seeing … rents coming down substantially.”
U.S. Treasury Secretary Scott Bessent joins ‘Mornings with Maria’ to outline the record tax refunds coming to Americans, detail the administration’s economic strategy, and highlight the boost expected from deregulation and shifting trade dynamics.
Bessent projected that the combination of estimated $1,000 to $2,000 first-quarter tax refunds and rising real wages will set the stage for a significant productivity boom in 2026, provided that political conflicts do not hinder progress.
“The economy is broadening out. You could see it in other sectors of the stock market, away from Big Tech, [which] are doing very well. But if they try to shut down the government, I believe that the Senate Republicans should immediately forego the filibuster, keep the government open, and let the economy do its thing,” he argued.
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‘The Big Money Show’ panel reacts to Democrat-led states blocking residents from receiving President Donald Trump’s tax relief under the ‘One Big Beautiful Bill Act.’
Bessent concluded by asserting, “Growth does not create inflation. The friction creates inflation when there is more demand in the economy than supply. And … President Trump’s unheralded policy is deregulation. We are creating more supply across everything.”
He expressed confidence that as tax refunds increase and working Americans retain more of their earnings, the U.S. economy will return to a state of non-inflationary growth, benefiting both lower-income households and the broader market. “Main Street, Wall Street can both do well. And my guess is both have a very good year next year,” he stated.
U.S. Treasury Secretary Scott Bessent joins ‘Mornings with Maria’ to warn that the SCOTUS ruling could impact national security, discuss President Donald Trump’s Fed chair search, and outline how tariffs, tax refunds, and growth plans will shape 2026.
U.S. Treasury Secretary Scott Bessent recently addressed the ongoing economic challenges facing American families, particularly the lingering effects of Biden-era inflation. He expressed optimism that real affordability relief is on the horizon, predicting significant improvements in everyday prices, wages, and housing as the economy gears up for a “bountiful” 2026.
“We should think that 2025 was setting the table. 2026 is going to be a bountiful year — if the Democrats don’t shut down the government,” Bessent stated during an exclusive interview on “Mornings with Maria” Tuesday.
He emphasized that substantial tax refunds are expected for working American households in the first quarter, which will lead to changes in withholding and an increase in real incomes. “I am very optimistic for working Americans, for job growth, and for capital formation. But we cannot let the Democrats shut down the government,” he added.
Bessent pointed out the historical context of government shutdowns, noting, “We have the longest government shutdown in history, which was a hit to GDP and slowed things down. We’re still going to finish the year probably [with] 3.5% GDP growth, which is incredible.”
TRUMP INSISTS PRICES ARE ‘COMING DOWN,’ BLAMES BIDEN — BUT VOTERS SAY THEY’RE STILL GETTING SQUEEZED
In a broader analysis, Bessent argued that the Trump administration’s tax, energy, and immigration policies are beginning to reverse what he termed the “worst inflation in 50 years.” He highlighted falling rents, lower energy prices, and a surge in capital investment as early indicators of relief.
Treasury Secretary Bessent discussed his economic outlook for 2026 on “Mornings with Maria” Dec. 16, 2025. (FOXBusiness)
Bessent elaborated on affordability, stating, “Affordability has two components … there [is] constraining spending and then upping revenues, which is what we’re doing. I suspect that we are going to see a substantial drop in inflation in the first six months of next year.”
He noted that rents are decreasing, attributing this trend to the enforcement of immigration policies. “The story that the Biden administration doesn’t want to talk about — the mass, unfettered immigration, they have pushed up rents, especially for working Americans … So President Trump, by enforcing the border, sending home more than 2 million illegals, we’re now seeing … rents coming down substantially.”
U.S. Treasury Secretary Scott Bessent joins ‘Mornings with Maria’ to outline the record tax refunds coming to Americans, detail the administration’s economic strategy, and highlight the boost expected from deregulation and shifting trade dynamics.
Bessent projected that the combination of estimated $1,000 to $2,000 first-quarter tax refunds and rising real wages will set the stage for a significant productivity boom in 2026, provided that political conflicts do not hinder progress.
“The economy is broadening out. You could see it in other sectors of the stock market, away from Big Tech, [which] are doing very well. But if they try to shut down the government, I believe that the Senate Republicans should immediately forego the filibuster, keep the government open, and let the economy do its thing,” he argued.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
‘The Big Money Show’ panel reacts to Democrat-led states blocking residents from receiving President Donald Trump’s tax relief under the ‘One Big Beautiful Bill Act.’
Bessent concluded by asserting, “Growth does not create inflation. The friction creates inflation when there is more demand in the economy than supply. And … President Trump’s unheralded policy is deregulation. We are creating more supply across everything.”
He expressed confidence that as tax refunds increase and working Americans retain more of their earnings, the U.S. economy will return to a state of non-inflationary growth, benefiting both lower-income households and the broader market. “Main Street, Wall Street can both do well. And my guess is both have a very good year next year,” he stated.
