Cathie Wood Calls Trump Policy 'Reaganomics On Steroids' As Treasury Secretary Says US Can Grow Its Way Out Of Debt

ARK Invest founder Cathie Wood endorsed the President Donald Trump administration’s economic policies Sunday, comparing them to “Reaganomics on steroids” as Treasury Secretary Scott Bessent defended the government’s ability to outgrow mounting debt obligations.

What Happened: Wood posted on X that current policies mirror the former President Ronald Reagan-era playbook of deregulation, tax cuts, and lower interest rates that initially faced market skepticism.

“Early in my career, financial markets doubted that Reaganomics would accelerate GDP [Gross Domestic Product] growth and lower inflation, cutting the deficit. Reaganomics worked,” Wood wrote.

Her comments responded to Bessent’s assertion that “we can both grow the economy and control the debt” by ensuring economic growth outpaces debt accumulation. “If we change the growth trajectory of the country, then we will stabilize our finances and grow our way out of this,” Bessent stated.

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Why It Matters: The endorsement comes as Trump’s $3.8 trillion tax-and-spending package narrowly passed the House 215-214 last week, triggering bond market volatility.

The Congressional Budget Office estimates the legislation could increase national debt by $2.3 trillion to $5.7 trillion by 2034. With federal debt already at $36.2 trillion, the International Monetary Fund warned that U.S. debt-to-GDP ratios approaching 98% represent an “unsustainable trajectory.”

Moody’s recently stripped the U.S. of its final AAA credit rating, projecting Trump’s tax cut extensions could push the federal deficit from 6.4% to nearly 9% by 2035. The rating agency cited debt concerns as the primary factor behind the downgrade.

Wood maintains her optimistic outlook despite widespread economic headwinds, Wood previously predicted the current “rolling recession” will end within six months as policy clarity emerges on tariffs, taxes, and regulations.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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