Trump's 'One Big, Beautiful Bill' Will Spark 'Non-Inflationary Boom' In US, Says Scott Bessent: It Will Last For 'Several Years'

U.S. Treasury Secretary Scott Bessent predicted on Tuesday that the American economy is on the verge of a multi-year expansion, driven by what he dubbed President Trump‘s “one big, beautiful bill.”

Unleashing A ‘CapEx’ Explosion

Speaking to Fox Business, Bessent argued that the administration's legislative achievements in 2025 have set the stage for a “non-inflationary boom” in 2026 that will combine high growth with falling prices.

Bessent attributed the optimistic outlook to a surge in capital expenditure (CapEx), fueled by tax incentives like 100% depreciation on manufacturing investments.

He noted that trillions of dollars in committed manufacturing funds are now “kicking in,” creating a supply-side expansion that boosts output without overheating prices.

“We have a CapEx boom, and it will lead to an employment boom,” Bessent said. Citing data from the Atlanta Fed, he highlighted a projected 5.4% GDP growth rate for the fourth quarter, signaling that the economy is accelerating faster than many analysts anticipated.

Relief For Working Americans

According to the Treasury Secretary, the benefits of this macroeconomic shift are already reaching average households. He pointed to falling rents and gasoline prices as evidence that inflation is “finally on track” to stay low.

Simultaneously, Bessent emphasized that the “big beautiful bill” fulfills key campaign promises, specifically the elimination of taxes on tips, overtime pay, and Social Security benefits.

With tax season opening, he promised “substantial refunds” would soon hit bank accounts, increasing take-home pay and driving consumer confidence.

Strength At Home And Abroad

The Secretary contrasted this domestic momentum with the struggles of global competitors. He dismissed criticisms from California Governor Gavin Newsom and warned Canadian Prime Minister Mark Carney against pivoting away from U.S. trade alliances.

Bessent asserted that while other nations struggle with stagnation or “globalist agendas,” the U.S. is entering a sustained period of prosperity.

“I think it can span for several years,” he concluded, citing structurally lower interest rates and reduced government spending as the foundation for a durable economic golden age.

Major Benchmarks Advance Over 2026 So Far

The S&P 500, Dow Jones, and Nasdaq 100 indices have risen by 1.75%, 1.28%, and 2.91%, respectively, on a year-to-date basis.

On Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and the Nasdaq 100 index, respectively, closed higher. The SPY was up 0.40% at $695.49, while the QQQ advanced 0.91% to $631.13.

On Wednesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were mixed.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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