In an exclusive interview with CNBC, Treasury Secretary Scott Bessent stated there is a 'very good chance' that the U.S. budget deficit has peaked, following a report that showed the monthly deficit reached $432 billion in July, the highest in over five years. The total deficit for the fiscal year so far has climbed to nearly $1.8 trillion, surpassing last year's figures.
The national debt has also hit a record high of over $40 trillion, more than doubling in the past decade, raising concerns about the country's financial stability. Bessent, along with President Trump and Office of Management and Budget Director Russell Vought, is focused on fiscal consolidation measures that could save hundreds of billions of dollars.
The administration has promoted tariffs on trading partners as a potential revenue source to help reduce the national debt, although these tariffs have faced legal challenges, including a Supreme Court ruling that struck down many of them.
Despite these hurdles, Bessent anticipates that tariff revenue for this year will match projections for 2025, suggesting that the government will not need to refund companies this time. He emphasized that the $40 trillion debt figure is not insurmountable, asserting that economic growth could help mitigate the issue