In an interview with NBC on 23/11, US treasury secretary Scott Bessent stated that the 43-day government shutdown cost the economy USD 11 billion. However, he remains optimistic about growth prospects for next year, citing domestic tax cuts and lower interest rates.

Bessent explained that many sectors of the US economy are sensitive to interest rates, such as the declining real estate market. However, he does not believe the economy faces recession risks. "I am very optimistic about 2026. We are building the foundation for a strong, non-inflationary growing economy", he said.

The US treasury secretary attributes inflation to the service sector, not President Donald Trump's import tariffs. He expects falling energy costs to drive down goods prices.

US treasury secretary Scott Bessent in Sweden in July 2025. *Photo: Reuters*

Bessent noted that energy prices decreased in October, while home sales increased. He affirmed that the Trump administration continues its efforts to cool inflation, currently at 3%. Bessent revealed that, when calculated separately, inflation in Democratic-controlled states is 0.5% higher than in Republican-leaning areas, due to regulatory differences.

Despite this, recent data indicates that manufacturing activity has slowed, with prices rising due to import tariffs. A University of Michigan survey also shows consumer anger over high prices.

Bessent stated that Trump's reduction of import tariffs on foods like bananas and coffee resulted from trade agreements negotiated over several months. "Inflation is a composite number, and we must consider all factors. We are trying to reduce prices on what is within our control", he said.

The US treasury secretary affirmed that policy changes, such as capping overtime taxes, deducting auto loan interest, or partially reducing social security taxes, help increase workers' real income. Citizens may receive tax refunds in Q1 2026 due to these adjustments.

Additionally, according to Bessent, the administration plans to announce a new measure to reduce healthcare costs. He also believes trade agreements will support economic growth and predicts many new factories will open across the US.

Bessent is not alone in his optimism for the world's largest economy. White House economic advisor Kevin Hassett also expects 2026 to be "a booming year". However, he noted that Q4 growth this year might be half of forecasts, at 1.5-2%, due to the government shutdown.

Ha Thu (according to Reuters)