Bessent says US poised for 3% GDP growth, claims Americans ‘don't know how good they have it'

The United States will close out the year on firmer economic ground than many anticipated, Treasury Secretary Scott Bessent said Sunday, citing buoyant holiday spending and stronger-than-expected output growth across recent quarters. His remarks come amid a disconnect between robust headline economic data and persistently subdued public sentiment.

Why does Scott Bessent see the economy ending 2025 on “strong footing”?

Speaking on CBS News’ Face the Nation, Bessent argued that economic momentum had outpaced expectations: “The economy has been better than we thought. We’ve had 4% GDP growth in a couple of quarters,” he said. He added that despite federal disruptions, “We’re going to finish the year, despite the Schumer shutdown, with 3% real GDP growth.”

Recent GDP readings have indeed painted a mixed yet improving picture. According to the Bureau of Economic Analysis, output contracted by 0.6% year-over-year in the first quarter of 2025, before rebounding with a 3.8% gain in the second. Initial third-quarter estimates, due 23 December, are currently tracked at 3.5% annual growth by the Federal Reserve Bank of Atlanta.

Are US consumers feeling the recovery?

Despite strong aggregate indicators, households remain hesitant to embrace what officials describe as a solid economic environment. The University of Michigan’s December sentiment index registered 53.3—higher than November’s but still nearly 30% lower than a year earlier.

Inflation remains a central source of strain. The most recent consumer price report—delayed by the government shutdown—showed annual inflation at 3% in September, with food-at-home prices rising 3.1%.

How has Trump administration responded to affordability concerns?

US President Donald Trump has rejected the argument that Americans are struggling financially, instead framing the affordability rhetoric as politically motivated. “The word ‘affordability’ is a con job by the Democrats,” Trump said during a cabinet meeting last Tuesday. “The word ‘affordability’ is a Democrat scam.”

However, polling suggests widespread frustration with the administration’s economic stewardship. Roughly two-thirds of registered voters say the Trump administration has underperformed on managing living costs, according to a recent NBC News survey.

Who does Scott Bessent blame for ongoing inflation pressures?

Asked about Trump’s comments, Bessent pointed to what he described as inherited inflationary conditions and an unfavourable media lens shaping consumer attitudes. “The American people don’t know how good they have it,” he said. He added, “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.”