Treasury Secretary Scott Bessent expressed confidence in the trajectory of the U.S. economy, citing key deflationary trends, tax policy changes, and incoming tax refunds for working Americans.<\/p>\n
Commenting on the nation\u2019s domestic economic picture, Bessent said that \u201cthings look great,\u201d while appearing on Fox Business\u2019 Larry Kudlow.<\/p>\n
\u201cI think 2026, 2027 are going to be great years,\u201d he said, pointing to President Donald Trump\u2019s recently enacted tax reforms, with \u201cno tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans for American cars,\u201d which Bessent said is helping boost real income.<\/p>\n
See Also: Trump Says He Spoke With Narendra Modi On Diwali: Calls Indian PM \u2018A Great Friend\u2019 Amid Tariff Tensions<\/a><\/p>\n \u201cYou might recall, I am also the IRS commissioner, so I can see what\u2019s going on at the IRS,\u201d he said, adding that during the first quarter of next year, working Americans are going to see \u201csubstantial tax refunds,\u201d as a result of the reforms enacted in recent months.<\/p>\n According to Bessent, many workers had kept their withholding levels unchanged, which refers to the deductions made by employers from their employees\u2019 gross wages. This, he said, when combined with tax refunds, will translate into a noticeable jump in disposable income. <\/p>\n Bessent said that the administration has the affordability crisis, which he referred to as the \u201cBiden inflation,\u201d under control, noting that \u201cenergy prices are down,\u201d while adding that the Consumer Price Index numbers too should \u201cstart coming down,\u201d either the next month, or the month after that. <\/p>\n CPI Report Delayed Amid The Shutdown<\/p>\n September\u2019s Consumer Price Index report has been delayed for over 9 days and is set to be released on Friday morning<\/a>, with economists saying that it could have an outsized impact on the Federal Reserve\u2019s interest rate decisions next week.<\/p>\n This is largely because CPI data is arriving in isolation, without key companion reports like jobs numbers, wholesale inflation, or retail sales, forcing both the Fed and the markets to lean heavily on inflation alone to guide their decision-making.<\/p>\n Last month, it was reported that 72% of the components<\/a> in the Consumer Price Index were seeing a price surge that was ahead of the Fed\u2019s 2% inflation target. This marked a significant jump from 55% a year ago and was primarily attributed to Trump\u2019s tariffs. <\/p>\n