U.S. Treasury Secretary Scott Bessent rejected on Sunday the idea that the U.S. economy could enter a recession in 2026, defending that the tariff agenda and trade agreements reached with other countries will lead to 'very strong' growth.
The Treasury Secretary acknowledged that the U.S. economy is facing some pressure, but he answered negatively when questioned about the possibility of a recession next year.
However, he was convinced that the big and beautiful bill signed last summer by U.S. President Donald Trump will see its fruits next year.
'I am very confident in 2026, because what we are going to see is that the president has closed peace agreements, fiscal agreements and trade agreements and the 'One Big, Beautiful Bill,' said Bessent.
'We have laid the groundwork for an economy with very strong and non-inflationary growth,' Bessent said during NBC's 'Meet the Press' morning program.
'I am very, very optimistic about 2026.'
Bessent added that the recent 43-day government shutdown—the longest in history, which did not conclude until November 12—had impacted the economy.
In this regard, Trump last Thursday withdrew the 40% tariffs on certain Brazilian products, such as beef, vegetables, coffee, cocoa, or aviation components, leaving them again at the original 10%.
The United States recorded a 3% annual inflation rate last September, the latest available data due to the federal shutdown. Controlling inflation is one of the main concerns of the Republican government, which suffered a major electoral setback in several important state and local elections earlier this month.
Nevertheless, he admitted that some interest rate-sensitive sectors 'have entered a recession' and said that the real estate sector 'faces difficulties.'
