Treasury Secretary Scott Bessent says the Trump administration has officially conquered the “three I’s” — immigration, interest rates, and inflation — the trio he believes nearly destroyed working-class America under Joe Biden.

In an exclusive interview with Breitbart Business Digest co-authors Alex Marlow and John Carney, Bessent revisited the framework he first laid out in his March 2024 Fox Digital op-ed, “How the Three I’s Are Eviscerating Working Americans.” According to him, those destructive forces are now firmly under control.

1. Immigration: “Borders Closed — Promise Made, Promise Kept.”

Bessent didn’t hesitate to point to the clearest win.

“Immigration, interest rates and inflation,” he recalled. On immigration, the message was short and clean:
“Borders closed, promise made, promise kept.”

After years of unchecked illegal crossings under Biden, Bessent said Trump’s enforcement-first approach has reversed the crisis and restored stability at the border.

2. Interest Rates: Stabilized and Moving in the Right Direction

According to Bessent, Trump inherited a 10-year Treasury yield of 5.08 percent — a rate that stifled homebuyers and businesses. Today, yields hover around 4 percent.

“Mortgage rates key off of that,” he explained, noting that calmer long-term Treasury markets signal lower borrowing costs ahead. Bessent said he expects short-term rates to fall further, delivering much-needed relief to families crushed by the Biden-era rate hikes.

3. Inflation: “Going to Bite the Dust”

Bessent reserved his strongest optimism for inflation.

“I am very confident over the coming six, 12 months, we are going to see the third I bite the dust, and inflation is going to come down,” he said.

The reason? Energy — the heartbeat of the economy.

“All or most big inflations start with an energy problem,” Bessent noted. Under Trump, energy prices are down, production is up, and grocery and fuel costs are finally easing after the punishing Biden years.

Red States vs. Blue States: A Tale of Two Economies

Bessent previewed an upcoming Council of Economic Advisers study showing what many Americans already know: red states are winning. Big.

“The best way to get your inflation rate down 50 or 60 basis points is move from a blue state to a red state,” he said. “Red state inflation is at least half a percent lower than blue state inflation.”

Why?
Blue state energy policies — or, as Bessent put it, “crazy green schemes.”

He singled out New Jersey’s outgoing governor Phil Murphy for “destroying the people in New Jersey” with aggressive green mandates that sent energy costs through the roof. His successor now wants to undo the damage by cutting energy prices.

Meanwhile, in New York, Bessent said the administration keeps urging Gov. Kathy Hochul to approve pipeline projects to keep heating bills down.

“If the Northeast wants to de-industrialize and have higher inflation… people are voting with their feet,” he warned.

Deregulation: The Engine Behind Trump’s Growth

Bessent also highlighted the administration’s sweeping deregulation push, calling it “massive” and essential for delivering strong economic growth without triggering inflation — the hallmark of Trump’s first term.

“You created a demand shock in the private sector with the tax bill, and that was met by substantial deregulation,” he said. “That’s how you get the low inflation.”

And the numbers back him up.
The Atlanta Federal Reserve’s GDPNow model projects 4.2 percent growth for the third quarter, riding a wave of strong job gains and solid second-quarter expansion.