US Treasury Secretary: "3% Economic Growth This Year... Inflation to Drop Significantly Next Year"

CBS Interview
"Biden Caused Inflation... Service Prices, Not Tariffs, Are the Main Factor"

Scott Bessent, U.S. Secretary of the Treasury, stated that the U.S. economic growth rate this year will reach around 3%, and projected that inflation will noticeably slow down next year.

Scott Bessent, U.S. Secretary of the Treasury.

In an interview with CBS on the 7th (local time), Secretary Bessent said, "The economy has been more resilient than expected," adding, "We will end this year with a real GDP growth rate of 3%."

Regarding high prices and the burden of living costs, he emphasized, "We are focused on curbing inflation," and added, "The inflation rate will drop significantly next year."

However, Secretary Bessent attributed the responsibility for the current high inflation to the previous Joe Biden administration.

He argued, "The Biden administration caused the worst inflation in the past 50 years," and claimed, "The Democratic Party's energy policies and excessive regulations led to supply shortages, which in turn resulted in the current burden of living costs."

He also noted, "The increase in import prices is lower than the overall inflation rate," and pointed out, "The current drivers of inflation are service prices, which are not directly related to tariffs," thereby refuting the argument that the tariff policies of the Donald Trump administration fueled inflation.

Secretary Bessent highlighted that prices for groceries, gasoline, and rents-items heavily consumed by ordinary people-are falling, easing the burden of living costs. He explained that real incomes have also increased by about 1%, improving consumers' purchasing power, and expressed confidence by saying, "The U.S. economy will move toward even greater prosperity next year."

Regarding China's resumed imports of U.S. soybeans following the U.S.-China trade agreement at the end of October, he stated, "China's pace of purchases will not accelerate, but both countries are proceeding according to the agreed schedule."

He further explained that the temporary support payments promised to farmers by the Trump administration serve as a 'bridge' to fill the gap, as the damage to farmers caused by China's suspension of soybean imports has not yet been fully recovered.