Treasury Secretary Bessent Defends ‘Trump Accounts,’ Calls Critics Disconnected from Reality

U.S. Treasury Secretary Scott Bessent strongly promoted the Trump administration’s newly launched savings initiative for children, saying it can function as a “rainy day fund” when beneficiaries reach adulthood. Speaking on CBS Saturday Morning, Bessent emphasized that the program encourages early investment and financial awareness among American families.

Bessent says the child savings program can act as a long-term safety net, promote investing, and narrow financial knowledge gaps despite concerns over inequality.

Under the Republican-backed tax and spending law, the federal government will create tax-advantaged investment accounts for nearly 25 million children born between January 1, 2025, and December 31, 2028. Each eligible child will receive a $1,000 government contribution, invested in the stock market through index funds.

Bessent explained that families can also add money tax-free, and employers are expected to contribute as well. He highlighted support from major donors, noting that Michael and Susan Dell pledged $250 per child, while companies like Bank of America and JPMorgan Chase committed $1,000 for their employees’ children.

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He argued that the accounts address a major financial weakness among Americans, pointing out that many households struggle to cover even small emergency expenses. According to Bessent, families can preserve the funds for emergencies or use them later for education, home purchases, or starting a business once the child turns 18.

Bessent also said the initiative will improve financial literacy, especially for Americans who have never owned stocks. By participating in the markets for nearly two decades, he believes families will gain practical exposure to investing.

On affordability concerns, Bessent blamed the Biden administration for inflation while crediting President Trump for wage growth, lower drug prices, and tax relief. The Treasury Secretary also defended the Justice Department’s investigation into Federal Reserve Chair Jerome Powell, stating that accountability does not undermine independence. He insisted the Federal Reserve must remain transparent and beyond reproach in its actions.

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