Scott Bessent said there is a “very good chance” the U.S. budget deficit under Donald Trump has peaked, casting the administration’s next phase as a push toward fiscal consolidation.
That claim comes after July’s monthly deficit hit $432 billion and the fiscal-year-to-date gap reached nearly $1.8 trillion, while total federal debt climbed above a record $40 trillion.
Bessent said he, Trump and OMB Director Russell Vought are working on measures that could save several hundred billion dollars, and he argued the government can “grow our way out” of the debt load.
Tariff revenue remains part of that strategy: despite Supreme Court setbacks to many levies, Bessent said 2026 collections should roughly match 2025 levels and should not require refunds to companies.