U.S. Treasury Secretary Scott Bessent delivered a robust endorsement of President Donald Trump's economic policies at the Milken Institute Global Conference on May 5, 2025. He emphasized that the administration's combination of tariffs, tax cuts, and deregulation are interconnected strategies designed to stimulate long-term investment in the U.S. economy.

Bessent highlighted the administration's tax bill, which aims to make several first-term tax cuts permanent and expand deductions for small businesses and high-tech investments. He projected that these policies could lead to a 3% economic growth rate by the following year and reduce the federal deficit by approximately $300 billion annually.

"These initiatives are designed to encourage companies to invest in American manufacturing by offering tax incentives and deregulation benefits," Bessent stated.

Despite a recent economic contraction and an International Monetary Fund (IMF) forecast of 1.8% GDP growth for 2025, Bessent remained optimistic. He cited the resilience of U.S. financial markets and historical recoveries from major economic shocks. He also advocated for gradual deficit reduction to mitigate credit risk in Treasury debt, suggesting that this approach would lower interest rates and support economic stability.

The IMF has recently revised its global economic forecast downward, citing the adverse effects of U.S. tariffs that have reached century-high levels under President Trump. Global growth expectations were cut by 0.5 percentage points to 2.8% for 2025. The IMF emphasized the uncertainty and complexity stemming from escalating trade tensions.

In contrast, the Organisation for Economic Co-operation and Development (OECD) projects U.S. GDP growth of 2.6% this year and 1.6% in 2025, down from its June forecast of 1.8% growth next year. The OECD notes that the slowing growth of U.S. gross domestic product is expected to be cushioned by monetary policy easing.

Bessent's remarks at the Milken Institute Global Conference underscore the administration's commitment to its economic agenda, despite contrasting forecasts from international institutions. The coming months will reveal the impact of these policies on the U.S. economy and global markets.