Treasury Secretary Scott Bessent expressed cautious optimism Thursday, telling CNBC there is a “very good chance” the U.S. budget deficit has already reached its peak under President Donald Trump.
Bessent made the remarks in an exclusive interview with CNBC’s Sara Eisen, one day after his department’s extraordinary debt buyback announcement drew widespread attention.
“We are going to be laser focused,” Bessent told Eisen, signaling the administration’s intent to aggressively pursue spending discipline going forward.
The monthly U.S. budget deficit surged past $432 billion in July, its highest level in more than half a decade, according to data released last week by the Treasury Department.
The fiscal year-to-date gap has climbed to nearly $1.8 trillion, surpassing where it stood at the same point a year earlier and raising fresh alarm among fiscal watchdogs.
The Treasury Department also confirmed this week that total U.S. government debt, accumulated to fund those deficits, has hit a new record above $40 trillion.
That figure has more than doubled over the last decade, deepening long-standing concerns about the country’s long-term financial health and its ability to service growing obligations.
Bessent identified himself, Trump, and Russell Vought, director of the Office of Management and Budget, as among the federal leaders actively working on fiscal consolidation measures.
He said several hundreds of billions of dollars could potentially be saved through those combined efforts, though he did not detail specific timelines or mechanisms.
The White House has leaned heavily on broad tariffs against trading partners as a revenue tool intended to help shrink the national debt over time.
Those tariffs have faced repeated legal challenges, most significantly the Supreme Court’s decision to strike many of them down, complicating the administration’s fiscal strategy.
Despite those setbacks, Bessent said he expects this year’s tariff revenue to come in at roughly the same level as 2025’s, after levies were re-implemented following the legal battles.
He added that those revenues should not need to be refunded to companies this time around, offering a more stable revenue picture than the prior year presented.
“There’s nothing magic about the 40-trillion number,” Bessent said. “We can grow our way out of that.”
