U.S. Treasury Secretary Scott Bessent joins CNBC's 'Squawk on the Street' to discuss outlooks on President Trump's budget bill, tariff policy, and more.

Washington

U.S. Treasury Secretary Scott Bessent stated that he expects a House vote on President Trump's budget bill, expressing confidence that the legislation will pass. Bessent addressed concerns about the bill's potential to increase the national deficit, arguing that Congressional Budget Office (CBO) forecasts underestimate future economic growth and that higher growth rates, similar to those seen during Trump's first term, would offset debt increases.

Bessent also discussed the role of tariffs and deregulation in the administration's economic strategy, maintaining that tariffs have not harmed the economy or markets. He emphasized the administration's focus on private sector growth and reducing the deficit-to-GDP ratio, while dismissing criticism from figures such as Elon Musk regarding the bill's fiscal impact.

Treasury Sec. Bessent: I expect a bill vote around 1:30 p.m. today

The so-called big, beautiful bill facing a final House approval vote in the coming hours. Joining us now is Treasury Secretary Scott Besant. Mr. Secretary, thank you so much for joining us. We're going on more than six hours now where Minority Leader Jeffries is speaking. What are you hearing? What's your expectation for when and whether this could pass? Well, it's going to pass. And my expectation is that we'll get a vote around 1.30 today. Got it. You have said that this isn't a drag on the deficit, despite the fact that CBO has scored it pretty aggressively, that it will add trillion dollars to our public debt. You've told me before and you've told everyone that you're a fiscal hawk. So how do you square that? That's a key question, I think, that they're asking on Wall Street. Yeah. I square it with I don't believe in the CBO forecast. So, Sarah, let's just look at common sense and logic that if the bill, for some reason, hadn't passed, we would have had the biggest tax hike in history and the CBO would say we're going to grow at 1.8 percent. They're going to make expensing and they have four structures and equipment permanent. And we are going to have the biggest tax cut in history. And the CBO is still saying we're only grow at 1.8 percent. So if you turn up the growth projections to something like 2.83 percent, which was achieved during President Trump's first term, then the debt disappears. The other thing, too, is are we growing the GDP faster than we're growing the debt, which I am sure we will will happen over the remainder of the president's term. We've been talking to economists about the GDP, because I know that's what you're saying is that they're not there. They're underplaying how much this could add to economic growth and therefore that'll help with the debt picture. We've been asking economists about it. It's hard to see a 3 percent number on most Wall Street forecasts right now. How do you get there? Because I get deregulation is going to help and I get there's some stimulus here and the clarity will be helpful. But then there's also tariffs, which could hurt. Well, then let's think about this. You can't have it both ways. If tariffs are going to hurt the economy, then we're going to pick up, according to the CBO, if you want to take CBO scoring over the 10 year window, we'd pick up two point eight trillion in revenue. And what we've seen so far is that tariffs haven't hurt. The dog that didn't bark was the tariffs going to hurt the economy. We're going to hurt the market. Market had the fastest recovery ever, ever, from the low in April, from a 15 percent decline. We're at new highs in the market. So I've made my career on listening to the market, not Wall Street economists. So I'm going to stick with what the market's telling me. Mr. Secretary, it's great to be with you today. And as you're saying, the market's at all time highs. And perhaps even more insightfully, the bond market's very, very calm as we sit here now. Does that not even indicate to you that you could push the deficit more if you wanted to? I mean, America is probably the only country in the world that could be talking about a five or six or seven percent, even if it's only in the short term deficit, and see bond markets as calm as they are. Well, unlike the previous administration, we don't see the need to do that because we think that we can get private sector growth going. And President Trump's agenda, as I've said many times, is a three-legged stool. So it's trade, it's tax. So we're going to complete the tax today when the House votes, and then the president will sign it tomorrow. And I think the permanence and the stimulus from that, and then an important part is deregulation. That is slower moving. And I think those are going to kick in in the third and fourth quarter. So we want to bring down the deficit to GDP. We don't need these huge amounts of government spending to keep the economy going. We want the private sector to do it like it did in President Trump's first term. So is Elon Musk completely wrong? Have you called him to tell him that he's campaigning on the wrong issue on this bill? As I've said in the past, I have great respect for Elon on rockets. I will leave that to him. He can leave the finances to me.

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Kyiv

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