Worried about $2,000 tariff check inflation? Don't spend it, Bessent says
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Treasury Secretary Scott Bessent in the Oval Office. Photo: Win McNamee/Getty Images
The administration is hopeful Americans won't necessarily spend the $2,000 tariff checks President Trump has promised, and instead pump them into "Trump accounts" for kids, Treasury Secretary Scott Bessent says.
Why it matters: Amid a growing affordability crisis, the Trump administration is arguing inflation is under control and prices will come down soon — while also raising the prospect of pumping hundreds of billions into the economy.
Catch up quick: President Trump said Monday that $2,000 checks would start going out in mid-2026, just ahead of midterm elections. (Officials concede legislation will be necessary to actually make it happen.)
- Some estimates suggest the dividend could cost $450 billion, though those same projections also factor in a very slight rise in inflation, less than 0.1 percentage point.
Yes, but: The risk of rising prices remains a huge concern for consumers, and against that backdrop, Fox News asked Bessent Tuesday night how the government would avoid another bout of stimulus-driven inflation if the checks happen.
- "Maybe we could persuade Americans to save that, because one of the things that's going to happen next year" is the start of "Trump accounts" to save for kids, Bessent said.
Context: The "big, beautiful bill" included the creation of a new class of investment accounts for children born between 2025 and 2028.
- These "Trump accounts" will be seeded with $1,000 from the U.S. Treasury, and parents will be eligible to contribute another $5,000 a year.
By the numbers: A National Bureau of Economic Research study found that 40% of the 2020 CARES Act stimulus payments under Trump were spent, 30% used to pay down debt, and 30% saved.
- Later stimulus payments were also mostly used to spend or pay down debt, the New York Fed subsequently found.
What to watch: The next steps remain unclear; the administration has not yet proposed a bill to actually authorize the checks, nor has it clarified exactly who might be eligible.
