Secretary Bessent lauds Trump's economic strategies, takes aim at Minnesota leadership
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Speaking at luncheon in Golden Valley, U.S. Treasury Secretary Scott Bessent asserted that President Donald Trump’s administration has laid the groundwork in 2025 for a strong economy in 2026.
In his prepared remarks, Bessent’s comments often skewed political, saying the Biden administration had dampened entrepreneurship, and Trump is reversing that dynamic.
Bessent touted the administration’s efforts to improve the economy and stressed that tax cuts and deregulation will spur economic growth.
Bessent avoided addressing the recent unrest in Minnesota following the fatal shooting of a woman by an ICE agent in Minneapolis. But he took multiple jabs at Minnesota’s fraud issues and economic performance under the leadership of Gov. Tim Walz.
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Bessent's defense of tariffs
A Supreme Court ruling on tariffs is expected soon, and Bessent defended the administration’s tariff policy, saying tariffs will help bring more industries and businesses back to the U.S.
He said that even if the Court rules against it, the administration has other — though more cumbersome — ways to impose tariffs.
Audience member Beth Benike, a U.S. Army veteran and co-founder of Busy Baby, asked about tariffs. Her company makes silicone placemats that fasten to a highchair or table to keep babies’ toys, food and utensils from falling to the floor.
Benike raised concerns about high tariffs hurting her business.
"I spent a lot of time trying to find a way to manufacture in the U.S.,” said Benike. “There's nothing I would like more as a veteran and a proud American. However, my business is not big enough to manufacture in the U.S.”
She asked Bessent for advice on how to navigate this problem and asked what kind of help was available.
Bessent advised Benike to “diversify” in manufacturing in other Asian countries and to form a buying club to increase her purchasing power.
The economy in 2026
The Secretary said he is optimistic about the economy in the year ahead — and he’s not alone. Some Wall Street economists share that view, largely because of what they see as a fiscal tailwind.
Individuals and corporations received tax cuts under last year’s “Big Beautiful Bill,” and Bessent expects individual tax refunds to be unusually large because withholding wasn’t adjusted for provisions like tax cuts on tips.
Many economists doubt his positive spin, especially when it comes to tariffs and jobs. But this was his stage, not a debate.
When the discussion turned to monetary policy, Bessent expects interest rates to come down and said President Donald Trump is likely to name a new Federal Reserve chair this month.
He also emphasized that deregulation would make it easier for businesses and entrepreneurs to invest and grow.
Criticism of Minnesota
Bessent also focused a part of his conversation on Minnesota by sharply criticizing Gov. Tim Walz and his administration. The state, he believes, has lost its former economic edge.
“These challenges include a glaring absence of political leadership from the previous administration,” said Bessent. “The damaging impacts of illegal immigration, rampant fraud and the unchecked power of government.”
Minnesota, according to Bessent, lacks political leadership, and he was scornful about Walz multiple times.
Bessent also said the Treasury Department and the IRS are closely examining various public service program-related frauds in Minnesota, and other states will get similar treatment.
Bessent’s remarks came the same day that a report from the Minnesota Department of Employment showed jobs in Minnesota grew faster relative to the nation as a whole between September and November. Minnesota’s unemployment rate in November sat at 4 percent, lower than the 4.6 percent national rate.
Trump Accounts
Overall, Bessent's strongest passion was reserved for the new “Trump Accounts.”
Briefly, every eligible American child born between January 1, 2025, and December 31, 2028, can receive an investment account seeded with $1,000 by the government.
Parents, employers, charities and others can make additional contributions, which Bessent called on the audience to do so for Minnesota’s children.
The money grows tax-deferred, and the $1,000 will go mostly into an equity index fund.
“I think in 20, 30, 40 years, these accounts will be the biggest legacy, because people will start cashing out,” said Bessent.
