File photo: US treasury secretary Scott Bessent (Picture credit: AP) US treasury secretary Scott Bessent has insisted the United States is not heading for a recession in 2026, expressing strong confidence that President Donald Trump’s tariff strategy and new trade agreements will bring economic relief over the next year. Speaking to NBC News’ Meet the Press, Bessent said he was “very, very optimistic on 2026” and argued that the administration had “set the table for a very strong, noninflationary growth economy”.Bessent said the White House expects healthcare costs to fall and promised fresh announcements on that front this week. At the same time, he acknowledged that some parts of the economy are struggling, echoing earlier comments from National Economic Council director Kevin Hassett that interest-rate-sensitive sectors, especially housing, have been in recession.
Bessent says inflation ‘has nothing to do with tariffs’ as U.S. rolls them back: Full interview
Bessent also pointed out that the 43-day government shutdown — the longest on record — had squeezed economic activity.A recent NBC News poll showed that nearly two-thirds of registered voters believe the administration has not delivered on the economy or cost of living. Despite this, Bessent highlighted Trump’s sweeping domestic policy package — the so-called “One Big, Beautiful Bill” — saying its various tax breaks and income-boosting measures are still kicking in and will support households next year. As per CNBC, the law introduces benefits including a larger state-and-local tax deduction, tax relief on overtime and tip income, and a senior “bonus” to offset Social Security taxes.Bessent blamed the services sector, rather than Trump’s tariffs, for ongoing inflation. He said lower energy prices should help cool inflation further, which currently sits around 3% annually. Inflation is running 0.5% higher in Democratic-led states, a gap Bessent attributed to “increased regulation”, reported Reuters.Hassett, speaking separately to Fox News, predicted that 2026 would be “an absolute blockbuster year,” although he warned of a “hiccup” in fourth-quarter data because of the shutdown.He said growth could slow to between 1.5% and 2% before picking up strongly next year.Bessent also defended the administration’s approach to the Russia-Ukraine peace push, telling NBC News that Trump is “a president of peace” and arguing that Europe’s repeated sanctions packages had failed. He supported the 28-point peace proposal backed by the US, despite concerns raised by Ukraine, European governments and American lawmakers.Bessent further used the interview to urge Senate Republicans to end the filibuster if Democrats trigger another government shutdown, calling the recent closure a “1.5% hit to GDP”.