Key Takeaways
- Inflation Decline Expected Soon: Treasury Secretary Scott Bessent said CPI numbers could start falling as early as next month, signaling that the affordability crisis is easing.
- Tax Relief Boosting Take-Home Pay: Bessent said new tax policies — including no tax on tips, overtime, or Social Security — will lead to major refunds and “substantial real income increases” for workers.
- Growth Over Government Waste: Citing Warren Buffett, Bessent emphasized that America’s path to fiscal health lies in spending discipline and robust economic growth, not higher taxes.
Treasury Secretary Scott Bessent says relief is on the horizon for American consumers as inflation cools and growth stays strong. Speaking with FOX Business’ Larry Kudlow on Wednesday, Bessent predicted that price declines will begin showing up in the data within weeks.
“Things look great, and they’re good now. I think 2026 and 2027 are gonna be great years,” Bessent said confidently. “This affordability crisis, we’ve gotten it under control. The first thing to getting it under control was stopping the Biden inflation. Now that we’ve done that… energy prices are down. I think housing prices are a lagging indicator, especially in rates. So I think we could see CPI numbers start coming down next month, the month after.”
The Treasury chief’s optimism comes ahead of Friday’s long-awaited consumer price index report, which economists expect to show a 3.1% year-over-year increase. That would mark a sharp slowdown from the record inflation that hammered consumers under the previous administration.
Bessent also pointed to several tax cuts fueling middle-class growth, including no taxes on tips, overtime, or Social Security benefits — plus new deductions for auto loans on American-made cars. “In the first quarter of the year, we are going to see substantial tax refunds for working Americans,” he said.
Quoting Warren Buffett, Bessent added, “If we can keep spending flat to down and grow at least 5% nominally… our deficit-to-GDP ratio could make substantial progress again.”
The message from Treasury is clear: after years of inflation and stagnation, American prosperity is back on track.