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Treasury Secretary Scott Bessent voiced fresh optimism this week, saying he expects the U.S. economy to return to 3% growth before the end of the year.

Speaking on CNBC’s “Squawk Box,” Bessent described the underlying economic conditions as strong despite recent market volatility and geopolitical disruptions tied to the Iran war.

Bessent, who took over the Treasury post during a period of inflationary challenges and rising global tensions, framed his comments as both a forecast and a reassurance to investors.

“We can have something with a three in front of it this year,” he said, highlighting confidence in domestic resilience.

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The remarks come as Wall Street tries to find its footing after several turbulent weeks in commodity and defense markets. Stocks tied to defense industries tumbled sharply on reports that Germany is scrapping several warship programs, sending Rheinmetall shares down 17%.

That backdrop of sector-specific weakness has contributed to broader questions about Europe’s industrial health.

Meanwhile, Bessent’s upbeat tone suggests the Treasury expects fiscal policy and private sector momentum to carry the U.S. economy forward.

He emphasized that, as the conflict in Iran moves toward resolution, global supply disruptions could ease and support higher growth levels.

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Behind the scenes, policymakers appear focused on restoring balance between monetary tightening and economic expansion. The Federal Reserve’s efforts to rein in inflation slowed GDP growth earlier this year, but consumer spending and labor market participation have both shown staying power.

The push for 3% growth is not merely symbolic. For many investors, it represents a psychological threshold indicating a return to pre-crisis economic strength.

Hitting that number could reenergize confidence in the U.S. recovery story after several quarters of uneven results.

Bessent’s tenure so far has been defined by attempts to stabilize financial expectations in the face of inflationary aftershocks and policy uncertainty. His comments signal a Treasury Department more willing to lean on growth forecasts rather than dwelling on the inflation narrative.

Market watchers note that achieving such growth will depend heavily on three variables: consumer confidence, energy prices, and global stability.

If supply chains continue to normalize and commodity prices do not spike, economists believe Bessent’s projection could prove realistic.

Not all sectors share the same optimism, however. Manufacturing data remains mixed, and energy markets are bracing for price fluctuations as the Middle East situation evolves.

Still, sectors tied to technology and infrastructure have started to rebound, with S&P 500 futures rising modestly ahead of Micron’s earnings report.

Investors have also turned their attention to international developments that could ripple into U.S. markets. France has suffered a major power outage amid record summer heat, adding pressure to Europe’s already fragile energy system.

Such events amplify concerns about global supply networks and their potential impact on U.S. inflation expectations.

In addition, Bessent confirmed that the U.S. Treasury will oversee the release of frozen Iranian funds when that process begins.

That oversight, he suggested, allows Washington to control how and when those funds flow back into global markets, potentially mitigating sudden shocks to oil or currency markets.

The Treasury Secretary’s optimism stands in contrast to recent bearish forecasts from some investment banks anticipating a mild recession.

His confidence, however, aligns with recent data showing the U.S. consumer sector maintaining its footing and business investment gradually reviving. If that trend continues, growth near 3% could signal both a political and economic win for the administration as the year closes.

Though the road ahead remains uncertain, Bessent’s remarks appear designed to communicate stability.

For investors searching for footing amid inflation, war, and market pullbacks, hearing a Treasury chief talk about “a three in front of it” offers rare reassurance.

Whether the numbers ultimately bear that out could define investor sentiment for the remainder of the year.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.