United States Treasury Secretary Scott Bessent said the U.S. has had a “very strong” holiday shopping season so far, predicting that the U.S. economy would end on a strong footing.
In an interview with CBS News’ ‘Face the Nation’ Bessent said the economy is better than expected.
“We’ve had 4% GDP growth in a couple of quarters,” he said.
“We’re going to finish the year, despite the Schumer shutdown, with 3% real GDP growth.”
In the first quarter of 2025, GDP decreased by 0.6% year-over-year, according to the Bureau of Economic Analysis, while the second quarter saw a 3.8% increase.
Initial estimates from the BEA for the third quarter economic results are scheduled to be published on December 23.
The Federal Reserve of Atlanta predicted that the third quarter annual GDP would grow 3.5%.
This comes as the University of Michigan’s consumer sentiment survey came in at 53.3, up 4.5% in November, but down 28% from the same time last year.
Consumer spending accounts for around 70% of the U.S. GDP.
The latest inflation report showed that consumer prices rose by 3% year-over-year in September, including a 3.1% increase in the cost of food at home.
Recent polls show voters have been frustrated with President Donald Trump’s handling of the economy.
This comes as Trump pushed back on the idea that Americans are struggling financially.
“The word ‘affordability’ is a Democrat scam,” Trump said during a cabinet meeting last week.
When asked about Trump’s comments, Bessent defended the President’s views and said the media has perpetuated Americans' negative view of the economy.
“The American people don’t know how good they have it,” Bessent said.
“Now, Democrats created scarcity, whether it was in energy or over-regulation, that we are now seeing this affordability problem, and I think next year we’re going to move on to prosperity.”
