Treasury chief highlights steady consumer spending, moderating inflation, and rising real incomes heading into 2026.
By yourNEWS Media Newsroom
Treasury Secretary Scott Bessent said Sunday that the U.S. economy is “having a very strong holiday season,” citing robust consumer spending and continued growth across income levels.
“There is nothing to say that there are two dolls instead of 30 dolls,” Bessent said on CBS’ “Face the Nation”, referencing President Donald Trump’s remark earlier this year that Americans might pay “a couple of bucks more” under new tariffs but still enjoy abundant consumer choices.
Bessent credited strong GDP growth and rising real incomes for fueling the solid performance. He said the economy has logged multiple quarters of roughly 4% growth and is on pace to close 2025 with 3% real GDP expansion, outperforming most forecasts.
Addressing concerns about tariffs, the Treasury secretary said inflation remains largely stable and dismissed claims that import duties are the main driver of higher prices. “Imported goods inflation is about 1.8%,” he said, pointing instead to service-sector inflation “which actually has nothing to do with tariffs.”
Bessent cited the personal consumption expenditures (PCE) index at approximately 2.9% as evidence that overall inflation pressures are easing.
While CBS polling showed that 60% of Americans believe Trump “makes inflation sound better than it is,” with his economic approval rating at 36%, Bessent said the administration isn’t ignoring what households feel. “Affordability depends on both inflation and income,” he said, noting that real incomes have risen about 1%.
He attributed lingering cost pressures to “embedded inflation” from the Biden era but said the Trump administration’s fiscal and trade policies are reversing those effects. “The costs for a common man basket of essentials such as food, gasoline, and rent are easing,” he said, predicting inflation will “roll down strongly” next year.
On Trump’s new executive order investigating potential corporate price gouging in the beef industry, Bessent said the effort reflects a targeted approach distinct from Biden-era enforcement. He pointed to lower turkey prices ahead of Thanksgiving as a sign that food costs are stabilizing.
Bessent also addressed the federal welfare fraud investigation in Minnesota, noting that the scheme was initially uncovered by the Internal Revenue Service, where he also serves as acting commissioner. “We had to go in and clean up the mess for them,” he said. “A lot of money has been transferred from the individuals who committed this fraud, including those who donated to the government.”
The Treasury chief said continued growth in jobs, wages, and household spending shows that the U.S. economy is “on solid footing” heading into 2026.
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