On Sunday, Treasury Secretary Scott Bessent stated that the U.S. is not at imminent risk of experiencing a recession in 2026 and asserted that American citizens would soon reap the benefits of the Trump administration’s trade and tax policies.
“I am incredibly optimistic about 2026,” Bessent conveyed in an interview on NBC News’ “Meet the Press.” “We have established the foundation for robust, noninflationary economic growth.”
Aspects of the GOP’s extensive spending initiative — the One Big, Beautiful Bill Act — are still being implemented and have not yet impacted the economy, according to Bessent. The new legislation solidifies Trump’s 2017 tax reductions, introduces a senior “bonus” to offset Social Security taxation, and establishes a larger deduction for state and local taxes. Additionally, the proposal includes tax incentives for tip revenue, overtime wage, and auto financing.
Healthcare expenses are also anticipated to decrease, Bessent noted. The secretary mentioned that the Trump administration would provide further updates on this matter within the week.
Currently, a stalemate in Congress related to the prolongation of enhanced subsidies under the Affordable Care Act marketplace is likely to elevate healthcare costs for millions.
Bessent recognized that certain areas of the economy are demonstrating signs of difficulty, particularly in housing and sectors sensitive to interest rates. He mentioned that the services industry is contributing to inflation, asserting that decreasing energy prices will soon help lower costs.
On Sunday, Kevin Hassett, director of the White House National Economic Council, also indicated that economic metrics from the fourth quarter might reflect weakness due to the government shutdown. The 43-day congressional impasse in Washington, D.C., holds the record for the longest in U.S. history.
has not met expectations regarding the economy and living costs, as shown by a recent NBC News survey.
Americans’ perceptions of the economy mainly vary based on their income brackets, according to JPMorgan’s latest Cost of Living Survey.
Individuals with higher incomes assigned an average confidence rating of 6.2 out of 10, with 10 being best, as found by the bank. Over half of this group rated themselves between 7 and 10. Conversely, low-income individuals reported an average score of 4.4.
