Treasury secretary touts ‘golden age economy’ in Milken speech but says little on tariffs

U.S. Treasury Secretary Scott Bessent told a gathering of power brokers in Beverly Hills that President Trump’s controversial trade policies should be viewed as one leg of a three-pronged vision that, along with tax cuts and deregulation, will usher in a new era of American prosperity.

Speaking at the annual Milken Institute Global Conference, Bessent described the policies as laying the groundwork for a “golden age economy” that would be powered by an expanded U.S. manufacturing base and increased energy investment.

“I hope you can see the bigger picture now,” said Bessent in prepared remarks before an interview with conference founder and onetime junk-bond king Michael Milken.

The Treasury secretary said little, however, on President Trump’s controversial tariff policies, aside from describing China as the biggest piece of “this trade puzzle,” and stating that a “big, beautiful rebalancing” is possible.

Currently, many companies are uneasy over the impact of tariffs on prices and supply chains, following President Trump’s decision to impose a 10% levy on countries around the world, and a 145% levy on China. The tariffs have sparked fears of renewed inflation and have already translated into plunging imports at major U.S. ports.

On Monday, Bessent predicted that “in the end, trading relations will be stronger” but did not offer a specific timeline. Meanwhile, the Trump administration has touted its negotiations with dozens of countries but has yet to announce concrete deals.

‘Back to 3%’ deficits

In speaking with Milken, Bessent repeatedly raised concerns about the growing U.S. debt and the current deficit-to-GDP ratio, which grew to over 6% in 2024—a level that is largely unprecedented outside of wartime.

The Trump administration’s goal, said Bessent, is to bring that rate down by 1% each year until it is around 3%, while also reinvigorating growth with tax cuts and deregulation.

In the meantime, the U.S. is also confronting the growing expense of servicing the national debt as the yield on Treasury bills has grown, including a spike in April. Bessent, however, explained those recent yield increases as primarily part of a cyclical process, and predicted they will soon reverse as the U.S. returns to noninflationary growth.

Since being confirmed as Treasury secretary in January, Bessent has emerged as one of the most influential figures in the Trump administration, where he has pursued a more pragmatic agenda than some others in the cabinet. This has led to clashes that have pitted Bessent against Commerce Secretary Howard Lutnick and Trump advisor Elon Musk, including a shouting match where Musk reportedly blasted the Treasury secretary as a “Soros agent.”

An expert in foreign exchange and the first openly gay Treasury secretary, Bessent previously ran a major hedge fund and taught economic history at Yale University.

This story was originally featured on Fortune.com