Less than 24 hours after Mayor Zohran Mamdani’s progressive allies swept three competitive House Democratic primaries in New York City, ousting two incumbent congressmen, Bessent said what he claimed President Trump had predicted months ago: “Last night we saw, Mayor Mamdani is the leader of the Democratic Party and the establishment Democrats, finally, we are seeing where the Democrats are going in this election.”

Bessent added that he was present in the Oval Office when Trump told Mamdani directly that he would become the leader of the Democratic Party—and that Tuesday’s results confirmed what the White House had long anticipated. “It will be a very stark choice between Republican parties and—it’s not the fringe Democratic left anymore. It’s the mainstream of the Democratic Party,” Bessent said.

Mamdani, who won the New York City mayoralty in November 2025 with nearly 51% of the vote, has emerged as a galvanizing figure on the Democratic left. Tuesday’s results were striking in scope: Mamdani-backed Brad Lander ousted two-term Rep. Dan Goldman in NY-10, while challenger Darializa Avila Chevalier defeated five-term Rep. Adriano Espaillat—the chair of the Congressional Hispanic Caucus—in what Reuters called Mamdani’s bid to “remake the Democratic Party into a democratic socialist entity.”

Bessent suggested the movement was already spreading beyond the five boroughs, pointing to Maine and Michigan as states where he believed Democratic socialist politics were gaining traction. “More power to them,” he added, “because we are going to offer a stark contrast.”

Bessent described that contrast: “Do you want to keep more of your money? Do you want to have … the state take over?” He cited “the regimes collapsing” in Venezuela and Cuba as examples where that hasn’t worked, not directly mentioning the Trump administration’s sanctions against each or the military strike that led to the arrest of former Venezuelan President Nicolas Maduro. “I’m an economic historian,” Bessent added, before pivoting into a conversation about the history of tariffs and income taxes, asserting that Alexander Hamilton “was the earliest tariff man.”

Warsh breakfasts and the Fed’s new era

On monetary policy, Bessent offered a candid look at his relationship with the Fed’s new chairman who, like himself, was a protege of the legendary investor Stanley Druckenmiller.

He confirmed that he meets with Kevin Warsh—who was sworn in as the 17th Federal Reserve chair on May 22—for breakfast every week, a ritual he maintained through roughly 40 sessions with former Chair Jerome Powell. “It is important for the U.S. Treasury and the Federal Reserve to discuss ideas, to discuss policy changes, where do we see the economy going, where do we see regulation going, and what do we think are the challenges?” Bessent said.

He declined to comment on when rate cuts might come, even as Bank of America Research analysts now forecast the Fed will raise rates three times before year’s end. But Bessent applauded Warsh’s decision to scrap the Fed’s “dot plot” forward guidance projections, calling them a tool he’d actually traded against during his investment career. “The Dots are always wrong,” he said. “It’s groupthink.”

Warsh has moved aggressively since his confirmation, launching five internal task forces to review nearly every aspect of Fed policy—from communication strategy to its $6.7 trillion balance sheet. The scope has no precedent among recent Fed chairs. Bessent expressed full confidence that Warsh “will take the best path to satisfy both the inflation mandate and the growth mandate.”

For Bessent, monetary policy and equity ownership are part of the same argument.

Closing the equity gap

Perhaps the most forward-looking portion of the interview centered on Trump Accounts—tax-deferred, index-fund investment accounts for American children authorized under the One Big Beautiful Bill Act of 2025. Bessent framed them as a direct response to a jarring statistic: 38% of American households currently have no stake in the equity markets. “Maybe they have jobs at the companies, but they don’t participate in the stock appreciation,” he said.

Children born between January 1, 2025 and December 31, 2028 are eligible for a $1,000 seed investment from the Treasury Department, with accounts opening for additional deposits on July 4—the nation’s 250th anniversary. Families, friends and employers can contribute up to $5,000 per year per child. Bessent pointed to a high-profile philanthropic commitment: Michael and Susan Dell are putting $6.25 billion into Trump Accounts, which will distribute $250 to children in the bottom 80% of zip codes by income.

Not everyone is convinced the accounts will reach those who need them most. The Urban Institute warned earlier this year that without clear targeting guidelines, Trump Accounts would mostly benefit already wealthy families. CNBC reported this month that roughly 6 million children have already been enrolled ahead of the July 4 launch—but the Dell family’s $6.25 billion commitment, which directs top-ups specifically to lower-income zip codes, is the most concrete effort so far to ensure the program reaches beyond the affluent.

Bessent sees the accounts as more than a savings vehicle. “I think this is going to be a game changer,” he said, tying the equity-access push directly to the political moment. “What we saw yesterday in New York is a disillusionment with the system. We bring more people into the system.”

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.