Treasury Secretary Bessent anticipates the US will close 2025 with a 3% GDP growth.

House Speaker Addresses GOP Criticism and Economic Outlook

House Speaker Mike Johnson recently appeared on Barney & Co., discussing various topics including the criticism facing Republican leadership, the Supreme Court’s decision on Texas legislative maps, and issues surrounding affordability.

Treasury Secretary Scott Bessent made a prediction about the U.S. economy, suggesting that the gross domestic product (GDP) growth could reach 3% by the year’s end. During a Sunday appearance on CBS News’ “Face the Nation,” host Margaret Brennan raised a question regarding President Donald Trump’s earlier remarks about consumer spending — that Americans might opt to buy “two dolls instead of 30” this spring and that these dolls might cost a bit more.

Bessent responded, noting, “The economy is doing better than we expected.” He pointed out that recent quarters had been strong, with GDP growth rates around 4%. He also emphasized that despite the challenges posed by Mr. Schumer’s shutdown, the administration anticipates a year-end growth of 3%.

Federal Reserve Prepares for Rate Cuts Amid Labor Concerns

Looking forward, experts expect the Federal Reserve to cut interest rates for the third consecutive time this week, largely influenced by ongoing labor market concerns.

The economy faced challenges earlier in 2025, with a decline of 0.6% in the first quarter largely attributed to a spike in imports before new tariffs came into effect. However, the second quarter showed improvement, boasting a 3.8% annualized growth rate, driven by a reduction in imports. Overall, the annual growth rate in the first half of 2025 stood at approximately 1.6%.

Inflation Trends Raised Concerns

Recent reports indicated that consumer prices rose once more in September, adding to a sense of concern among Americans regarding inflation and economic health. The prolonged federal government shutdown from early October to mid-November delayed the release of the Bureau of Economic Analysis’ third-quarter GDP data, originally set for December 23rd.

As of December 5, a prediction from the Bank of Atlanta’s GDP Now suggested a 3.5% increase in GDP for the third quarter, hinting at a total growth of around 2.2% for the first three quarters of the year.

Brennan also pressed Bessent on public dissatisfaction with the Trump administration’s handling of economic issues and rising inflation, questioning whether the administration was adequately acknowledging the struggles of working Americans.

Trump Criticizes Affordability Policies Amid Inflation Concerns

In a recent statement, President Trump referred to current affordability policies as a “Democrat fraud” while inflation remains a nationwide concern. Bessent critiqued media portrayals of rising inflation, arguing that affordability encompasses two factors: inflation and real income. He noted that real incomes have risen by about 1%, but underscored that it’s important to recognize how people feel about their financial situations.

Bessent attributed part of the affordability issue to policies created by Democrats, claiming these have led to scarcity in areas like energy and overregulation. “We’re heading into a period of prosperity next year,” he stated confidently.

He remarked on the Biden administration’s claims of the worst inflation in decades, asserting that measures had been taken to reduce these rates. The Consumer Price Index (CPI), a common inflation measure, decreased to 2.3% year-on-year in April — the lowest level since 2021, significantly lower than the record high of 9.1% in June 2022.