Treasury Secretary Scott Bessent is making a bold call: the U.S. economy is about to enter a multi-year boom that somehow manages to deliver hot growth without hot prices. The catalyst? What he's calling President Trump's "one big, beautiful bill."

The Capital Spending Wave

Speaking with Fox Business on Tuesday, Bessent laid out his theory for why 2026 could mark the start of something special. The key, he argues, is a massive wave of capital expenditure about to wash over the American economy.

The administration's legislative wins in 2025 included tax incentives like 100% depreciation on manufacturing investments. Translation: companies can write off the full cost of new equipment immediately, which makes building factories and buying machinery a lot more attractive. Bessent says trillions of dollars in committed manufacturing funds are now "kicking in," creating what economists call a supply-side expansion—more stuff being produced without the economy overheating.

"We have a CapEx boom, and it will lead to an employment boom," Bessent explained. He pointed to Atlanta Fed data projecting 5.4% GDP growth for the fourth quarter, a number that's running ahead of what most analysts penciled in.

What This Means For Your Wallet

The Treasury Secretary says regular Americans are already feeling the effects. Rents are falling. Gas prices are dropping. Inflation, in his view, is "finally on track" to stay low for the foreseeable future.

Meanwhile, the "big beautiful bill" delivers on several Trump campaign promises: no more taxes on tips, overtime pay, or Social Security benefits. With tax season now open, Bessent promised "substantial refunds" heading to bank accounts soon, which should boost take-home pay and consumer confidence.

America First, Everyone Else Struggling

Bessent didn't miss the chance to draw some contrasts with America's competitors and critics. He dismissed pushback from California Governor Gavin Newsom and issued a warning to Canadian Prime Minister Mark Carney about moving away from U.S. trade partnerships.

While other countries wrestle with stagnation or what Bessent called "globalist agendas," he believes America is entering a sustained period of prosperity. "I think it can span for several years," he said, pointing to structurally lower interest rates and reduced government spending as the foundation for what he described as a durable economic golden age.

Markets Keep Climbing

The major indices seem to like what they're hearing. Year-to-date, the S&P 500 has gained 1.75%, the Dow Jones is up 1.28%, and the Nasdaq 100 has jumped 2.91%.

On Tuesday, the SPDR S&P 500 ETF Trust (SPY) closed 0.40% higher at $695.49, while the Invesco QQQ Trust ETF (QQQ) advanced 0.91% to $631.13. These ETFs track the S&P 500 and Nasdaq 100, respectively.

Wednesday's futures were mixed as traders digested Bessent's optimistic forecast alongside other economic data.