Treasury Secretary Scott Bessent on Tuesday suggested that Americans save the proposed $2,000 tariff checks rather than spend the money to avoid inflationary effects.
Bessent made the comments on Fox News when asked by host Bret Baier whether sending the checks to most Americans would increase inflation.
"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 replied.
Bessent was referring to a House GOP proposal backed by President Donald Trump that would create tax-deferred investment accounts — coined "Trump Accounts" — for babies born in the U.S. over the next four years, starting them each with $1,000.
At age 18, they could withdraw the money to put toward a down payment for a home, education, or to start a small business. If the money is used for other purposes, it will be taxed at a higher rate.
Trump on Monday said he wants to issue tariff checks to "moderate income, middle income" Americans by mid-2026.
"We have thousands of dollars for individuals of moderate income, middle income. We are going to pay down debt. We have a lot of money from tariffs; if we didn't have tariffs, this country would be in serious trouble," Trump told reporters Monday in the Oval Office at a meeting with the 2026 FIFA World Cup task force.
As of Sept. 30, the federal government had generated $195 billion in tariff-related revenue, up 153% from $77 billion in fiscal year 2024, according to the Treasury Department. Almost $30 billion was collected in July alone, Treasury reported.
Some economists say sending tariff checks to every U.S. household could risk another bout of inflation, similar to what happened after stimulus checks were sent out during the COVID-19 pandemic.
William Dickens, a professor emeritus of economics and public policy at Northeastern University, says $2,000 "would help support the economy" if the U.S. were to enter a recession and would have little to no impact on prices.
"On the other hand, if the economy is running strong and he doles out $2,000 to everyone, it could drive inflation up."
The Tax Foundation, a private, nonpartisan organization, said that while tariffs have "undoubtedly raised costs for American firms and consumers — since Americans and not foreigners ultimately pay the tariff — rebating the revenue to consumers would be fiscally irresponsible and also risk increasing inflation."
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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