Treasury Secretary Scott Bessent stated on Wednesday that the US economy is positioned to return to 3% annual growth before the end of 2026, citing the winding down of the conflict with Iran as a key catalyst for renewed economic momentum.
Bessent’s comments mark a significant shift in the administration’s growth outlook, moving away from the cautious tone that has characterized recent economic guidance amid geopolitical uncertainty.
The Treasury Secretary linked the potential for accelerated growth directly to the de-escalation of tensions in the Middle East, suggesting that the removal of supply chain disruptions and energy price pressures will allow the economy to regain its footing.
The remarks come as global equity and fixed-income markets navigate a period of heightened volatility.
Traders have been balancing optimism over peace prospects against a dense calendar of upcoming US economic data releases.
The recent market rally, partly fueled by declining oil prices and improving geopolitical sentiment, faces a test as investors assess whether the administration’s growth projections are grounded in near-term fundamentals or longer-term structural shifts.