Prime Highlights:
- Treasury Secretary Scott Bessent predicts the U.S. will finish the year with 3% real GDP growth.
- Holiday shopping season described as “very strong,”reflecting robust consumer activity.
Key Facts:
- Early estimates show the third-quarter GDP may grow 3.5%, according to the Federal Reserve Bank of Atlanta.
- Consumer prices rose 3% year-over-year in September, including a 1% increase in food costs.
Background:
Treasury Secretary Scott Bessent said the U.S. economy is ending the year on a strong note, projecting 3% real GDP growth despite recent political challenges. Speaking on CBS News’ Face the Nation, Bessent described the holiday shopping season as “very strong” and noted that recent economic performance has exceeded expectations.
“The economy has been better than we thought. We’ve had 4% GDP growth in a couple of quarters,” Bessent said. “We’re going to finish the year, despite the Schumer shutdown, with 3% real GDP growth.”
According to the Bureau of Economic Analysis, U.S. GDP contracted by 0.6% in the first quarter of 2025 but rebounded with a 3.8% increase in the second quarter. Early estimates for the third quarter are set to be released on December 23, with the Federal Reserve Bank of Atlanta expecting 3.5% annualized GDP growth.
Even with strong economic growth, Americans remain cautious. The University of Michigan’s consumer sentiment index rose to 53.3 in December, up from November but still down 28% compared to last year. Rising prices continue to affect people, with overall costs up 3% from a year ago, including a 3.1% increase in food prices.
Bessent attributed some of the public’s concerns to media coverage and lingering inflation pressures from the previous administration. “The American people don’t know how good they have it,” he said, adding that policy adjustments are expected to drive further prosperity next year.
While some political leaders have criticized the state of affordability, the economic indicators suggest a resilient U.S. economy heading into the new year, supported by strong consumer spending and steady GDP growth.
