WHY SCOTT BESSENT SAYS PAYCHECKS ARE ABOUT TO GO FURTHER
Is the āvibecessionā finally ending?
According to U.S. Treasury Secretary Scott Bessent, the answer is yes and then some.
Speaking at the World Economic Forum in Davos, Bessent outlined a roadmap for 2026 that points toward something markets rarely get:
strong growth without inflation.
Hereās why the Treasury is unusually confident
Liquidity Shock Incoming (Q1 Boost)
Bessent expects a major liquidity injection this spring, driven by the One Big Beautiful Bill (OBBBA).
ā«ļø Average household tax refunds projected to rise $1,000ā$2,000
ā«ļø Roughly $150B+ flowing back into consumer hands in Q1 alone
ā«ļø More spending power without new debt = positive demand impulse
Crushing the Cost of Living Without Killing Growth
The administration is shifting focus from the old āTwo Iāsā (Immigration & Inflation) to a new framework:
Investment & Innovation
š¹ Energy & Gas:
Domestic production expansion ā downward pressure on fuel and transport costs
š¹ Housing & Rent:
Tighter border policies + slower population inflows = easing demand pressure
Early signals point to rent growth cooling, especially in metro areas
š¹ Wages:
Blue-collar wages are now outpacing headline inflation, meaning real incomes are rising, not just nominal pay
š The Goldilocks Setup
The strategy aims for non-inflationary growth by:
ā¢ Incentivizing R&D
ā¢ Reshoring manufacturing
ā¢ Expanding productive capacity instead of printing demand
If successful, this creates an economy where:
GDP grows
Prices stabilize
Paychecks stretch further
Macro Takeaway:
Liquidity is rising.
Costs are easing.
Real wages are improving.
As Bessent put it:
We are moving from an era of scarcity to an era of abundance.ā
š Markets are watching closely.
#LiquidityProvision
#InflationHedge
#MacroShift
#Davos2026
