Bessent believes there won't be a recession in 2026 but says some sectors are challenged

Economic Outlook - Treasury Secretary Scott Bessent expressed optimism about the U.S. economy in 2026, stating that the country is not at risk of entering a recession and that Americans will soon benefit from the Trump administration's economic policies on trade and taxes [1][2] - Bessent highlighted that the GOP's spending package, the One Big, Beautiful Bill Act, is still being implemented, which includes permanent tax cuts from Trump's 2017 tax reform and additional tax breaks for various income sources [2] Healthcare Costs - Bessent indicated that healthcare costs are expected to become more affordable, with further announcements from the Trump administration anticipated soon [3] - However, a congressional deadlock regarding the extension of enhanced subsidies on the Affordable Care Act is likely to increase healthcare costs for millions [3] Economic Challenges - Bessent acknowledged struggles in certain sectors of the economy, particularly in housing and interest-rate-sensitive areas, while asserting that lower energy prices will help reduce inflation [4] - Kevin Hassett, director of the White House National Economic Council, noted potential economic weakness in fourth-quarter data due to a prolonged government shutdown, which was the longest in U.S. history [5] Public Sentiment - A recent NBC News poll revealed that around two-thirds of registered voters believe the Trump administration has not met expectations regarding the economy and cost of living [5] - According to JPMorgan's Cost of Living Survey, high-income respondents rated their economic confidence at an average of 6.2 out of 10, while low-income consumers reported a significantly lower average score of 4.4 [6]