US Treasury Announces Vision for Economic "Golden Age"

Washington, D.C. – Treasury Secretary Scott Bessent offered a markedly optimistic economic outlook for the United States on Thursday, June 12, 2025, anticipating growth above 3% for next year and the beginning of an economic "Golden Age." During an appearance before the Senate Finance Committee, Bessent detailed the pillars of this projection, which include the "One Big Beautiful Bill" legislative proposal, an active trade policy, and improvements in tax efficiency.

According to Secretary Bessent, inflation in the United States is at its slowest pace since 2021, with a slowdown in housing, food, and energy cost increases. He attributes this "substantial improvement" to the current administration's policies. The White House has also reported that inflation is lower than expected.

Regarding employment, the labor market remains robust , with low unemployment and high demand for workers. Since January, more than 500,000 private-sector jobs have been added, and wages have increased in both nominal and real terms. This strength, according to Bessent, is reflected in the recent performance of the stock market and consumer confidence data. The S&P 500 index is trading near its all-time high following encouraging inflation data.

However, this optimism from the Treasury contrasts with a more cautious stance from the Federal Reserve . The Fed has been reluctant to lower interest rates, in part due to uncertainty about how the tariffs imposed by the Trump administration itself could affect the economy and exacerbate inflation. This suggests that the administration's trade policies could be generating headwinds that temper expected growth.

A central element of the economic strategy is the "One Big Beautiful Bill," which seeks to make the 2017 tax cuts permanent and revitalize American manufacturing . This legislation, backed by the National Association of Home Builders, proposes a 100% exemption for the construction of new factories and the expansion of existing ones that support the "Made in America" ​​initiative, in addition to streamlining permits for manufacturing projects.

This law is expected to increase household disposable income by $7,800 to $13,300 and workers' wages by an average of $6,100 to $11,600 , according to the Council of Economic Advisers (CEA).

The economic strategy relies heavily on principles of supply-side economics : tax cuts and deregulation to encourage investment and production. The success of this approach will depend on whether these measures translate into real, sustained growth and wage increases for the average family , as projected, or whether the benefits accrue primarily to corporations and high-income individuals —a recurring debate surrounding this type of policy.

Secretary Bessent also highlighted a successful tax season , with increased tax revenues ( April +9.5%, May +14.7% year-over-year ) and a $2 billion reduction in IRS spending , thanks to efficiency improvements.

On the trade front, a historic agreement with the United Kingdom was announced, expected to generate a $5 billion export opportunity for American farmers and manufacturers. Bessent also reported on successful negotiations with China in London aimed at balancing the bilateral economic relationship, and anticipated " several major trade deals " in the near future, including one with India that is "well advanced."

The trade strategy, which includes tariffs and deregulation , is seen as an engine for growth and reindustrialization. However, this active pursuit of agreements and rebalancing with powers like China, while potentially beneficial, also carries geopolitical risks and could lead to global trade tensions if negotiations are perceived as aggressive, as suggested by the tariff threats to the EU.

Indicator Actual/Recent Figure (Based on sources) Administration's Projection/Target (Based on sources) Target Source GDP Growth Q1 2025 Rate: 0.3% annualized >3% by mid-2026; 3% average (3-3-3 Plan) Bessent, 3-3-3 Plan Inflation Rate Slowest pace since 2021; monthly average 0.2% in Q1 2025 Controlled, continuation of improvement Bessent Unemployment Rate Low Maintain strong labor market Bessent Job Creation (Private) >500,000 since January 2025 Continued robust growth Bessent Budget Deficit (% GDP) Actual ~6.5% 3% annualized (3-3-3 Plan) Bessent's 3-3-3 Plan

Secretary Bessent's "3-3-3 Plan" seeks to stabilize the national debt at around 100% of GDP by achieving average GDP growth of 3% , annual budget deficits of 3% , and increasing domestic oil production by 3 million barrels per day , which would entail significant cuts in government spending .

Follow us on our X La Verdad Noticias profile and stay up to date with the most important news of the day.