Treasury Secretary Scott Bessent Discusses U.S. Economic Outlook and 'Trump Accounts' on 'Face the Nation'

Economic Projections and Inflation Assessment

U.S. Treasury Secretary Scott Bessent appeared on CBS's 'Face the Nation' on Sunday, December 7, 2025, to discuss the nation's economic landscape, offering insights into growth, inflation, and new financial initiatives. Bessent, who was sworn in as the 79th Secretary of the Treasury on January 28, 2025, projected that the U.S. economy would conclude 2025 with a 3% real GDP growth.

Addressing concerns about inflation, Secretary Bessent cited a 1.8% inflation rate, attributing the rise in prices primarily to the service economy rather than tariffs. He noted that 'real incomes have increased by approximately 1%,' and while acknowledging inflation as a concern, he emphasized the importance of rising real incomes. Bessent also stated that the previous administration was responsible for 'embedded inflation' and highlighted a strong holiday shopping season across all income groups.

Introduction of 'Trump Accounts'

A significant portion of the discussion focused on the newly announced 'Trump Accounts,' a program designed to provide tax-deferred investment vehicles for children. These accounts were established under President Trump's 'One Big Beautiful Bill Act' (OBBBA) and aim to give American children a financial head start.

Key features of the 'Trump Accounts' include:

• A one-time $1,000 contribution from the federal government for eligible U.S. citizens born between January 1, 2025, and December 31, 2028.
• The ability for parents or guardians to open and manage these accounts until the child reaches 18 years of age.
• An annual contribution limit of up to $5,000 per child from various sources, including parents, friends, and employers.
• Employers can contribute up to $2,500 annually tax-free, with these amounts counting towards the $5,000 limit.
• Contributions from governmental and tax-exempt organizations do not count against the annual limit.
• Investment in these accounts must be directed towards low-cost index funds that track broad U.S. stock market indexes.
• Withdrawals are generally prohibited before the child turns 18, after which the account can be converted to an IRA, with earnings taxed as ordinary income upon withdrawal.

The program is scheduled to become available in mid-2026, with initial financial contributions commencing on July 4, 2026. The Treasury Department and IRS issued guidance (Notice 2025-68) on December 2, 2025, outlining how these accounts will operate.

Philanthropic Support and Ethical Disclosures

The 'Trump Accounts' initiative has also garnered significant private sector support. Philanthropists Michael and Susan Dell have pledged $6.25 billion to fund 'Trump Accounts' for approximately 25 million American children, providing a $250 contribution for eligible older children under 10 in specific zip codes.

During his 'Face the Nation' appearance, Secretary Bessent also disclosed that he had recently divested his interests in a soybean farm. This action was taken to comply with the ethics agreement he signed upon joining the administration, aimed at avoiding potential conflicts of interest.