Treasury Secretary Scott Bessent says working Americans will soon see tangible tax relief through larger refunds and higher take-home pay, a shift he says will drive down inflation and restore affordability after years of Biden-era economic pressure.
Bessent said Treasury estimates show first-quarter tax refunds averaging between $1,000 and $2,000 per household, driven by updated withholding tables and Trump-backed tax relief measures.
He said those refunds alone could inject tens of billions of dollars back into the economy in early 2026, directly benefiting middle- and working-class families.
Speaking on Mornings with Maria, Bessent said the Trump administration is focused on letting Americans keep more of what they earn instead of expanding federal spending.
“We should think that 2025 was setting the table,” Bessent said. “2026 is going to be a bountiful year, if the Democrats don’t shut down the government.”
Bessent said real disposable income is already rising, with Treasury data showing wages beginning to outpace inflation after years of negative real wage growth under Biden.
From 2021 through 2024, inflation averaged roughly 5 percent annually, while real wages were flat or negative for most workers, according to federal labor data.
Bessent warned that Democrats could derail progress by forcing a government shutdown in January, pointing to past shutdowns that shaved an estimated 0.2 to 0.4 percentage points off quarterly GDP.
The longest shutdown on record slowed investment, delayed federal payments, and disrupted private-sector growth, impacts Bessent said the economy cannot afford as momentum builds.
Despite lingering headwinds, Bessent said the U.S. is still on track to finish the year with approximately 3.5 percent GDP growth, well above the long-term average of around 2 percent.
He said that growth reflects a rebound in capital formation, with private investment increasing as regulatory burdens ease.
Bessent argued that Trump’s tax, energy, and deregulation agenda is reversing what he called the worst inflation in 50 years, which peaked above 9 percent under Biden.
Treasury and housing data show rent inflation slowing sharply, with some metro areas posting flat or negative year-over-year rent growth for the first time in years.
“Rents are down,” Bessent said, calling housing one of the clearest indicators that affordability pressure is easing.
Maxine Waters Sparks Outrage After Major Blunder on Live MSNBC Segment. huong 
In the high-stakes world of American politics, where every word is scrutinized and every statement can become viral content within minutes, even the most experienced legislators occasionally stumble in ways that undermine their intended message. Such moments serve as stark reminders that political passion, while necessary for effective advocacy, must be tempered with precision and constitutional literacy to maintain credibility and effectiveness.
The latest example of this delicate balance between fervor and accuracy emerged from a television appearance that was intended to deliver a serious constitutional argument about presidential fitness for office. Instead, the segment became a case study in how a fundamental error can overshadow substantive policy concerns and provide ammunition to political opponents eager to question a critic’s competence.
What unfolded reveals not only the challenges facing lawmakers who must navigate complex constitutional processes while under intense media pressure, but also the broader implications of how constitutional illiteracy can undermine legitimate political discourse in an era when every mistake is amplified and weaponized by opposing political forces.
The Television Appearance That Sparked Controversy
Representative Maxine Waters of California stepped before MSNBC cameras on Friday with a clear mission: to articulate her concerns about President Donald Trump’s fitness for office and call for constitutional action to address what she perceives as dangerous presidential behavior. The veteran congresswoman, known for her passionate advocacy and willingness to take strong stands against policies she opposes, intended to make a serious constitutional argument about the limits of presidential power.
Waters’ appearance was prompted by Trump’s recent decision to dismiss Federal Reserve Governor Lisa Cook, a move that the California Democrat characterized as both economically dangerous and potentially self-serving. Her concerns about the dismissal centered on its potential impact on monetary policy, interest rates, and the broader economy, issues that fall squarely within her expertise as a senior member of the House Financial Services Committee.
“It is time to call for Article [Amendment] 25 of the Constitution of the United States of America to determine his unfitness, to determine that something’s wrong with this president,” Waters declared during the appearance. “And I would suggest that we move very aggressively to talk about the danger to this country and to our democracy and not play around with this because this is absolutely one of the most destructive things that this president could do.”
However, Waters’ passionate plea was immediately undermined by a fundamental error that would overshadow her substantive concerns about economic policy. By referring to “Article 25” instead of the “25th Amendment,” she demonstrated a basic misunderstanding of constitutional structure that provided her critics with easy ammunition while detracting from her intended message about presidential accountability.
Understanding the Constitutional Error
The mistake Waters made reveals a fundamental confusion about the structure and organization of the U.S. Constitution that is particularly problematic for a member of Congress who has sworn an oath to support and defend that document. The Constitution consists of seven articles that establish the basic framework of government, followed by 27 amendments that modify or add to the original text.
Article 25 simply does not exist in the U.S. Constitution. The Constitution contains only seven articles: Article I establishes the legislative branch, Article II creates the executive branch, Article III establishes the judicial branch, Article IV governs relationships between states, Article V outlines the amendment process, Article VI establishes federal supremacy, and Article VII addresses ratification.
The 25th Amendment, which Waters clearly intended to reference, was ratified in 1967 and provides mechanisms for addressing presidential incapacity or inability to serve. Section 4 of the amendment allows the Vice President and a majority of cabinet members to declare a president unable to discharge presidential duties, effectively removing the president from power until the situation is resolved.
This distinction matters because it reflects basic constitutional literacy that voters rightfully expect from their elected representatives. When lawmakers demonstrate fundamental confusion about the documents they’ve sworn to uphold, it raises questions about their competence to participate in complex constitutional processes and undermines their credibility when making serious arguments about governmental power and accountability.
The 25th Amendment’s Actual Provisions
Understanding what Waters was attempting to invoke requires examining the 25th Amendment’s actual provisions and the high bar it sets for removing a president from office. The amendment addresses four scenarios related to presidential succession and incapacity, with Section 4 being the most relevant to Waters’ apparent concerns.
Section 4 allows the Vice President and a majority of principal cabinet officers to declare in writing to congressional leadership that the President is unable to discharge presidential duties. This declaration immediately transfers presidential powers to the Vice President as Acting President, but it also triggers a process that allows the President to contest the determination.
If the President contests the incapacity determination, Congress must decide the issue by two-thirds vote in both chambers within 21 days. This extraordinarily high threshold ensures that the 25th Amendment cannot be used as a routine tool for political disagreement but only in cases of genuine presidential incapacity that commands overwhelming bipartisan support.
The amendment has never been used to remove a sitting president, though it has been invoked voluntarily when presidents underwent medical procedures. Its invocation would represent an unprecedented constitutional crisis that would require extraordinary evidence of presidential incapacity beyond mere policy disagreements or concerns about decision-making quality.
The Federal Reserve Controversy at the Heart of Waters’ Concerns
While Waters’ constitutional reference was flawed, her underlying concerns about Trump’s dismissal of Federal Reserve Governor Lisa Cook touch on legitimate questions about presidential power over monetary policy and potential conflicts of interest. The Federal Reserve System was designed to operate with significant independence from political pressure, and Fed governors serve 14-year terms specifically to insulate them from short-term political considerations.