Bessent ties New York Democratic wins to stock ownership push
The Treasury secretary used a CNBC interview to discuss New York politics, Fed policy and Trump Accounts for children.
By Daniel Okafor · Business Editor
3 min read
Treasury Secretary Scott Bessent used a CNBC appearance Wednesday to cast New York primary results as proof of a broader Democratic shift to the left. He also linked that political argument to the Trump administration’s economic agenda, including a new program meant to give more children a stake in the stock market.
Bessent said on CNBC’s Squawk Box that President Donald Trump had predicted New York City Mayor Zohran Mamdani would become the “leader of the Democratic Party.” Bessent said the prior night’s results showed establishment Democrats were being pulled toward Mamdani’s politics.
Fortune reported that Mamdani-backed candidates won three competitive House Democratic primaries in New York City. Brad Lander defeated two-term Rep. Dan Goldman in NY-10, while Darializa Avila Chevalier beat five-term Rep. Adriano Espaillat, who chairs the Congressional Hispanic Caucus.
Reuters described the effort as part of Mamdani’s attempt to remake the Democratic Party as a democratic socialist force, according to Fortune. Mamdani won the New York City mayor’s race in November 2025 with nearly 51% of the vote, Fortune reported.
Bessent told CNBC that similar politics were gaining ground beyond New York, naming Maine and Michigan. He framed the Republican response as a choice centered on taxes, property and the role of the state, and cited Venezuela and Cuba as examples of economic systems he said had failed.
Fed chair breakfasts
Bessent also discussed his relationship with Federal Reserve Chair Kevin Warsh, who Fortune reported was sworn in as the 17th Fed chair on May 22. Bessent said he meets Warsh for breakfast each week and had held about 40 similar meetings with former Fed Chair Jerome Powell.
The Treasury secretary told CNBC that regular contact between Treasury and the Fed helps the two institutions discuss policy, regulation and economic risks. He did not say when interest-rate cuts might arrive, according to Fortune, while Bank of America Research analysts now expect the Fed to raise rates three times before the end of the year.
Bessent praised Warsh’s decision to end the Fed’s “dot plot” projections, saying he had traded against those forecasts during his investing career. Fortune reported that Warsh has created five internal task forces to review Fed operations, including communications and the central bank’s $6.7 trillion balance sheet.
Trump Accounts launch
Bessent also promoted Trump Accounts, tax-deferred index-fund investment accounts for children authorized under the One Big Beautiful Bill Act of 2025, according to Fortune. He said the accounts address a gap in stock ownership, citing a figure that 38% of U.S. households have no equity-market stake.
Children born from Jan. 1, 2025, through Dec. 31, 2028, are eligible for a $1,000 Treasury seed investment, Fortune reported. The accounts are scheduled to open for additional contributions on July 4, the nation’s 250th anniversary, with families, friends and employers able to contribute up to $5,000 per child each year.
Bessent pointed to a $6.25 billion commitment from Michael and Susan Dell, which Fortune reported will provide $250 to children in the bottom 80% of ZIP codes by income. CNBC reported this month that about 6 million children had already been enrolled before the launch.
The Urban Institute warned earlier this year that Trump Accounts could mostly help wealthier families without clearer targeting rules. Bessent told CNBC the administration wants more Americans inside the investment system, connecting the accounts to voter frustration he said was visible in New York.
This story draws on original reporting from Fortune.