Treasury Secretary Scott Bessent stated on Wednesday (the 24th) that he is confident the U.S. economy can return to a 3% growth trajectory as the war in Iran nears its end.

In a live interview on CNBC's "Squawk Box," Bessent remarked, "We might see a number starting with a 3 this year," adding that "the underlying economy is solid."

However, over the past two quarters, the domestic economy has shown sluggish growth, facing several headwinds, including a resurgence in inflation, a tightening of the previously cooling labor market, and the impact of President Donald Trump's tariff measures.

Gross Domestic Product (GDP) rose by only 0.5% in the fourth quarter of 2025, followed by a 1.6% annualized growth rate in the first quarter, closing the year with 2.1% annual growth.

Nevertheless, Bessent reiterated that his "3-3-3" plan—3% growth, a 3% budget deficit-to-GDP ratio, and a 3 million barrel increase in daily domestic oil production—remains achievable.

He estimated that the economic growth rate was around 4% in February, just before the U.S. and Israel launched their attacks on Iran.

Regarding the fiscal deficit target, he said, "I believe we can reach a deficit-to-GDP ratio starting with a 3 by the end of the President's term. The important thing is that from that point on, we will begin to pay down the total debt relative to the size of the economy."

The deficit-to-GDP ratio, which exceeded 6% in 2023 and 2024, is projected to fall to 5.8% by the end of 2025. This remains unusually high for peacetime, as large-scale fiscal spending from the COVID-19 pandemic era continues to affect subsequent years.

For the first eight months of fiscal year 2026, the budget deficit reached $1.25 trillion, a 9% decrease compared to the previous year.

A primary driver is high financing costs, which currently represent the largest budget expenditure item after Social Security.

Trump has repeatedly urged the Federal Reserve to lower benchmark interest rates as a way to ease the debt burden.

However, the Fed has resisted further rate cuts this year amidst a surge in inflation.

Bessent stated that Trump is "fully confident" that the new Fed Chair, Kevin Warsh, will appropriately lead policy.

U.S. NNP = CEO & Senior Reporter Hong Sung-goo / Special Dispatch to NNP info@newsandpost.com