US Budget Deficit Under Trump May Have Peaked, Says Treasury Secretary Bessent

Treasury Secretary Scott Bessent expressed a high probability on Thursday that the U.S. budget deficit under President Donald Trump has likely reached its peak.

"We are going to be laser focused," Bessent stated in an exclusive interview with CNBC's Sara Eisen, following a significant announcement from his department regarding an extraordinary debt buyback operation.

The monthly U.S. budget deficit reached its highest point in over five years in July, totaling $432 billion, according to the Treasury Department. The fiscal year-to-date deficit climbed to nearly $1.8 trillion, exceeding the same period in the previous year.

This week, the Treasury Department also reported that the U.S. government's total debt, accumulated to finance these deficits, surpassed $40 trillion for the first time, a new record. This debt has more than doubled in the past decade, raising concerns about the nation's financial stability.

Bessent indicated that he, along with President Trump and Russell Vought, director of the Office of Management and Budget, are actively pursuing measures for fiscal consolidation. These efforts are projected to save hundreds of billions of dollars.

While the White House has promoted its broad and substantial tariff plans on trading partners as a means to boost revenue and reduce the national debt, these levies have encountered legal challenges, notably the Supreme Court's decision to strike down many of them.

Despite these setbacks, Bessent anticipates that this year's tariff revenue will be comparable to 2025's figures, as the levies have been reimplemented. He also noted that, this time, these revenues should not require refunds to companies.

"There's nothing magic about the 40-trillion number," Bessent commented. "We can grow our way out of that."

Treasury Secretary Scott Bessent stated on Thursday that there is a "very good chance" the U.S. budget deficit under President Donald Trump has likely peaked.

"We are going to be laser focused," Bessent told CNBC's Sara Eisen in an exclusive interview, a day after his department's extraordinary debt buyback announcement.

The monthly U.S. budget deficit reached its highest level in over half a decade in July, topping $432 billion, the Treasury Department reported last week. That monthly report indicated the fiscal year-to-date deficit climbed to almost $1.8 trillion, surpassing its level at the same point a year earlier.

This week, the Treasury Department announced that the U.S. government debt pile, which funds these deficits, hit a new record above $40 trillion. The total has more than doubled over the last decade, intensifying concerns about the country's financial health.

Bessent mentioned that he, Trump, and Russell Vought, director of the Office of Management and Budget, are among the federal leaders working on fiscal consolidation measures. These efforts are expected to save several hundreds of billions of dollars, Bessent said.

The White House has promoted its goals for broad and steep tariffs on trading partners as a revenue driver intended to help shrink the national debt. However, these levies have faced repeated legal obstacles, most notably the Supreme Court's decision to strike down many of them.

Yet, Bessent expressed his expectation that this year's tariff revenue will be around the same level as 2025's after levies were re-implemented despite the challenges. He added that these revenues should not have to be refunded to companies this time.

"There's nothing magic about the 40-trillion number," Bessent remarked. "We can grow our way out of that."