Treasury Secretary Scott Betting Doubles the potential economic benefits of the rates and predicts enormous revenue growth for the US government, in addition to a boost for the domestic economy.
GDP -growth could reach 5%
On Tuesday, in a message on X, Bessent shared fragments of his recent performance on FOX News, and said that the “rates yield historical results for the American people”, while projecting that “total tariff income could reach $ 300 billion this year, but it can be much higher.”
Bessent argued that the income was able to eliminate the US economy considerably. “Every $ 300 billion adds 1% to GDP,” he said, adding to it, “with only rates, the growth can hit 5%.”
See also: Rate Impact reveals the vulnerability of the aluminum market
He repeated the same point that he made in his recent Fox News and stated: “Only with the tariff income will we be in the five, which is incredible”, adding that it was like a marathon running, “and started five miles for everyone else.”
Bessent also emphasized a shift in the tone of the regular media and critics about the rates in recent weeks. “You start seeing in the regular media, whether it is Wall Street Journal or the New York Times … People get addicted to tariff income.”
American manufacturers disagree
However, Berrum’s optimism is not shared by everyone, with the University of Michigan Economist Justin Wolfters Pushing back against claims that the rates can help to rebuild US production. “
On Tuesday, Woflers said in a post on X: “Let’s ask the American manufacturers if they help”, while they share the latest data from the Texas Manufacturing Survey of Dallas Fed, according to which 72% of the respondents said their company was struck negatively because of the president Donald Trump’s rates.
Only about 3.7% believed that Trump’s rates had a positive impact, in which 17% said that they “did not have an impact” and 7% that “do not know” about such an impact that so far as a result of the rates as a result of the rates.
On Tuesday, the Institute for Supply Management (ISM) released its production -purchasing managers index (PMI) for August, with 48.7%, just above 48% in July, but still shortage of the most important 50% of 50% indicating an extension of production.
This marks the sixth consecutive month of contraction of the index, in the midst of rising costs and uncertainties as a result of the rates.
Photo with thanks to: Maxim Elramsisy on Shutterstock.com
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