The next is the transcript of the interview with Treasury Secretary Scott Bessent that aired on “Face the Nation with Margaret Brennan” on Dec. 7, 2025.
MARGARET BRENNAN: Good morning and welcome to ‘Face The Nation.’ We’ve got lots of information to get to, and we start with the Secretary of the Treasury, Scott Bessent. Good to have you ever right here.
TREASURY SECRETARY SCOTT BESSENT: Morning, Margaret.
SEC. BESSENT: Mr. Secretary, lots of people are on the market vacation purchasing. Right here is how the President described again in April, what to anticipate from this season.
[SOT]
PRESIDENT DONALD TRUMP: Possibly the youngsters may have two dolls as an alternative of 30 dolls, you already know. And perhaps the 2 dolls will price a few bucks greater than they might usually.
[END SOT]
MARGARET BRENNAN: Was the President’s prediction then, appropriate?
SEC. BESSENT: Margaret, it is truly been a really sturdy vacation season, and the- you already know, we have seen throughout all of the revenue cohorts to date. And so there’s nothing to say that there are two dolls as an alternative of 30 dolls.
MARGARET BRENNAN: The President was improper to foretell decrease numbers of purchases and better costs?
SEC. BESSENT: The economic system has been higher than we thought. We have had the 4- 4% GDP development in a few quarters. We’ll end the yr, regardless of the Schumer shutdown, with 3% actual GDP development.
MARGARET BRENNAN: Effectively, the maker of Tonka Vans, their CEO, mentioned it should price 40 bucks for his or her toys proper now due to tariffs and inflation, it was 30 bucks the yr earlier than that, 25. Costs within the toy area are accelerating, and individuals are feeling that.
SEC. BESSENT: Effectively, Margaret inflation is a composite quantity, and it is roughly the identical yr over yr. And if we have been to have a look at all imported items, imported items inflation is under the inflation quantity.
MARGARET BRENNAN: The inflation quantity, you imply the–
SEC. BESSENT: The PC- the PCE quantity which is about 2.9%. Imported items inflation is about 1.8. It is the service economic system that is producing inflation, which truly has nothing to do with tariffs.
MARGARET BRENNAN: However after we hear from for instance, the President, when he says that affordability is a con job by Democrats, that appears to only not be resonating with shoppers which were polled by CBS. 60% of Individuals polled by this community advised us President Trump makes costs and inflation sound higher than they are surely, and his approval ranking within the economic system is now right down to 36% in our newest ballot. On inflation, approval is even decrease, 32%. Do not you’ll want to present that you just really feel the ache?
SEC. BESSENT: Effectively, Margaret, I believe the President’s annoyed by the media protection of what is going on on–
MARGARET BRENNAN: That is the polling of common Individuals.
SEC. BESSENT: –No, no- yeah, however I believe the typical Individuals, they’re listening to lots from media protection. And I’ll let you know that affordability has two parts, there’s inflation, after which there’s actual incomes. Actual incomes are up about 1% and what we’re not going to do is say that Individuals do not know what they’re feeling. We have been engaged on it each day. I used to be in your present on March speaking about affordability. The- we have made lots of positive factors, however keep in mind, we have this embedded inflation from the Biden years, the place mainstream media, whether or not it is Greg Ip on the Wall Road Journal, poisonous Paul Krugman at New York Instances or former Vice Chair, Alan Blinder, all mentioned it was a vibecession. The American individuals do not understand how good they’ve it. Now, Democrats created shortage, whether or not it was in power or over regulation, that we at the moment are seeing the- this. affordability drawback, and I believe subsequent yr we’ll transfer on to prosperity.
MARGARET BRENNAN: You do assume there’s an affordability drawback?
SEC. BESSENT: Sorry?
MARGARET BRENNAN: You do consider there’s an affordability drawback?
SEC. BESSENT: Oh, I believe the Biden administration created a terr–
MARGARET BRENNAN: No, however now we’re almost 12 months in, you mentioned the President would personal the economic system at this level.
SEC. BESSENT: I mentioned that the Biden administration created the worst inflation in 50 years, and perhaps for working Individuals, the worst inflation of all time. And we’ve pulled that quantity down- that Strategas analysis does one thing known as the frequent man index. Beneath Biden, the gathered inflation quantity, as measured by CPI, was about 20%. Their index confirmed 35. This yr for the primary time, the frequent man index is under the inflation index as a result of the basket of products for working Individuals, meals, gasoline, hire is coming down. So I wrote an essay March 12, 2024, and it talked in regards to the three I’s, immigration, rates of interest and inflation. Immigrant- mass, unfettered immigration, depressed wages precipitated housing costs to go up. President has closed the border that’s mounted. Rates of interest have come down. The bond market simply had the very best yr since 2020 and now we’re engaged on inflation, and I anticipate inflation to roll down strongly subsequent yr.
MARGARET BRENNAN: Effectively, I imply, grocery costs are up almost 3% in comparison with final September. The President appears to be acknowledging that grocery costs, or at the least beef costs, are a problem, as a result of he put out this order simply yesterday saying they’ll examine company value gouging for prime beef costs. Is not suing the meals corporations the identical factor the Biden administration did, and it did not actually work? How is that this any totally different?
SEC. BESSENT: Effectively, nothing- nothing the Biden administration did worked–
MARGARET BRENNAN: So why are you doing it?
SEC. BESSENT: As a result of this is not the identical factor. In the event that they- if they’d finished this, in the event that they’d finished it correctly, we might be in a special spot. And like, beef is one element. Thanksgiving Turkey was down 16%.
MARGARET BRENNAN: Effectively, I do know you might be engaged on the commerce entrance, and for American farmers and the costs that they’re experiencing, that they are feeling a pinch about not having a market to promote into, essentially.
SEC. BESSENT: Not- not anymore.
MARGARET BRENNAN: Effectively, the agricultural Secretary simply mentioned that the President goes to announce a bridge cost for farmers this week to provide them brief time period reduction whilst you’re engaged on these- finalizing these commerce packages. There are these low crop costs, and the soybeans particularly, I do know you spoke with China’s Vice Premier Friday. Are they going to hurry buying up?
SEC. BESSENT: Effectively, they are not going to hurry buying up. They’re within the cadence that we agreed to. Soybean costs are up about 12 or 15% because the settlement with the Chinese language. They’ll purchase 12.5 million metric tons. However Margaret, I am concerned within the agricultural trade. I run a soybean farm, and I can inform you–
MARGARET BRENNAN: You personal one, you put money into it.
SE. BESSENT: Sorry?
MARGARET BRENNAN: You personal or make investments in–
SEC. BESSENT: –Individuals in my household exit and work on it. I truly simply divested it this week as a part of the- my ethics settlement, so I am out of that enterprise. However I most likely know extra about any Treasury Secretary than- about agriculture because the 1800s and I can let you know that what farmers want is certainty, and we’ve put that in place with this commerce deal. 12 and a half million metric tons this yr, 25 million metric tons for the subsequent three years, for soybeans, additionally sorghum, the- and lumber.
MARGARET BRENNAN: So these purchases, simply to make clear, these shall be this yr, as a result of I heard you say this previous week that a number of the purchases would not happen till February.
SEC. BESSENT: Effectively, for the- for the season, so the crop yr.
MARGARET BRENNAN: The season yr?
SEC. BESSENT: Yep.
MARGARET BRENNAN: Okay. However why- if the whole lot’s positive, then why do farmers want a bridge cost from the Agricultural Division?
SEC. BESSENT: Sorry?
MARGARET BRENNAN: Why would farmers want a bridge cost from the Agriculture Division, then?
SEC. BESSENT: As a result of these costs have not are available, as a result of the Chinese language truly used our soybean farmers as pawns within the commerce negotiations. And we’re going to create this bridge as a result of, once more, agriculture is all in regards to the future. You have to begin financing for planning subsequent yr when issues shall be superb.
MARGARET BRENNAN: I wish to ask you about one thing that was introduced this previous week, the Trump accounts, and constructing on this idea so mother and father, as I perceive, are going to have the ability to open these accounts through the Treasury for his or her children, their tax deferred funding automobiles to U.S. citizen kids below 18, get $1,000 from the federal government for infants born between 2025 and 2028. So there are going to be restrictions on what the cash can be utilized for school tuition or their first home, is that proper?
SEC. BESSENT: No, it is- the federal authorities for youngsters born within the interval you simply described, goes to place $1,000 into these Trump accounts, it is going to be invested in a broadly diversified, low price index, after which it is going to be available–
MARGARET BRENNAN: Within the inventory market, in an trade traded fund or mutual fund.
SEC. SCOTT BESSENT: So in essence, it’s a belief fund. It’s a piece of the American economic system for each youngster, and they’ll have the ability to take it out once they’re 18, or they will convert it to a extra IRA-type program and maintain it for his or her retirement.
MARGARET BRENNAN: So there will not be the restrictions I discussed there about how they use the cash?
SEC. BESSENT: No.
MARGARET BRENNAN: Okay, so there was additionally a broadening of this- this previous week, with the Dell Basis making a big funding within the American kids. So how is that this going to work? Why construction it this manner, as an alternative of a financial savings account, for instance?
SEC. SCOTT BESSENT: Effectively, a financial savings account simply will get curiosity. That is the compounding energy of the inventory market. As Warren Buffett says, don’t- do not wager towards the American inventory market, do not wager towards the economic system. And that is going to convey a complete group of recent traders into the market. We’ll couple it with a giant quantity of monetary literacy, in order that kids perceive what they personal. The unbelievable present by Michael and Susan Dell shall be the- is a program that philanthropists’ foundations can do to high up these accounts. And we expect, we’re already at- Treasury is already in discussions with foundations, with main philanthropists to high up these accounts. It might both be for all kids, or you possibly can specify it by zip code, a college district, or you are able to do what the Dells did, and say that it’ll be- will not apply to the zip codes of the highest 20% of earners.
MARGARET BRENNAN: And extra info goes to be popping out on methods to use this and entry it?
SEC. SCOTT BESSENT: Sure, within the coming weeks, we’ll try this, after which the official kickoff shall be July 5.
MARGARET BRENNAN: Earlier than I allow you to go, I wish to ask you about this large fraud out in Minnesota, and the state welfare program has been below federal investigation since all the best way again in 2022. The President advised you, although, this week, to look into Somalis who, quote, ripped off that state for billions of {dollars}. He mentioned they contribute nothing. What precisely are you investigating?
SEC. SCOTT BESSENT: Effectively, Margaret, to be clear, the preliminary fraud that was found by the IRS for which I am the Appearing Commissioner- is found by IRS Felony Investigations Unit. This was not an endogenous factor that the state of Minnesota determined. We needed to go in and clear up the mess for them, and that is a part of the continued cleanup. Some huge cash has been transferred the- from the people who dedicated this fraud, together with those that donated to the government- Governor, donated to Consultant Omar and donated to AG Ellison, however they have been transferred to one thing known as MBs–
MARGARET BRENNAN: Mortgage backed securities, what–?
SEC. BESSENT: Sorry?
MARGARET BRENNAN: Transferred to what?
SEC. BESSENT: These are money- the- bureau providers, and they’re wire switch organizations which are exterior the regulated banking system, and that cash has gone abroad, and we’re monitoring that- the- each to the Center East and Somalia to see what the makes use of of which were.
MARGARET BRENNAN: Okay, however you don’t have any proof of that cash getting used to gasoline terrorism, which is what some conservative writers are alleging?
SEC. SCOTT BESSENT: That is why it is an investigation. We began it final week. We’ll see the place it goes. However I can let you know that, you already know, it is horrible. You recognize, Consultant Omar tried to downplay it. Mentioned, oh, it was very- the- it was very robust to understand how this cash should- must be used. She was gaslighting the American individuals.
MARGARET BRENNAN: Effectively, we’ll discuss to her.
SEC. BESSENT: Yeah. However, you already know, whenever you come to this nation, you bought to be taught which facet of the street to drive on. You bought to be taught to cease at cease indicators, and you bought to be taught the- to not defraud the American individuals.
MARGARET BRENNAN: Effectively, there are loads of- loads of legal conduct from communities nicely past the immigrant neighborhood, however we’ll speak about this with Consultant Omar shortly. Thanks, Mr. Secretary.
SEC. BESSENT: Good.
MARGARET BRENNAN: We’ll be again in a minute. Stick with us.
