economy

U.S. Treasury Secretary Scott Bessent said over the weekend that this year’s holiday shopping season is one of the strongest in recent years, and he believes the American economy is on track to finish the year in solid shape.
“The economy has been better than we expected. We’ve had two quarters of 4% GDP growth,” Bessent said on Face the Nation. “And despite the Schumer shutdown, we’re going to close the year with 3% real GDP growth.”

Consumer spending remains the key engine of U.S. economic performance
According to current data, U.S. GDP dropped 0.6% year-over-year during the first months of 2025, but the economy sharply rebounded in the second quarter, climbing 3.8%.
Economists and the Treasury Department are now waiting for preliminary third-quarter figures, expected on December 23. The Atlanta Federal Reserve recently estimated annualized third-quarter GDP growth at 3.5%.
Consumer spending accounts for nearly 70% of U.S. GDP, which makes a strong shopping season crucial for overall performance. Even so, sentiment among Americans remains mixed. The University of Michigan’s consumer sentiment index reached 53.3 in December—up 4.5 points from November, yet 28% lower than last year.
Inflation continues to pressure households. The latest available report—delayed due to the government shutdown—shows annual consumer prices rising 3%, with grocery prices up 3.1%.

Trump rejects criticism, but voters are increasingly dissatisfied
President Donald Trump has dismissed concerns about rising costs of living.

He recently described the word “affordability” as “a Democrat con job” and “a Democrat scam.”
But the public is not fully convinced. According to recent polls, two-thirds of registered voters believe the administration is falling short on the economy and cost-of-living issues, highlighting growing frustration.
Bessent responded to Trump’s remarks by arguing that the administration “inherited inflation from Biden” and that negative public sentiment is heavily influenced by media coverage. He added:
“The American people don’t realize how good they have it. Democrats created scarcity—whether in energy or through over-regulation—which led to this affordability problem. Next year, I believe we’ll move from scarcity to prosperity.”

Trade ties with China: agreements remain on track, but progress is slow
Beyond domestic issues, Washington is closely monitoring Beijing’s compliance with bilateral trade commitments.

U.S. Trade Representative Jamieson Greer said China is currently adhering to the agreements.
“With China, it’s always about verifying and monitoring commitments,” Greer said on The Sunday Briefing. “The agreements we’ve reached are specific, concrete, and easy to track—and so far, we see that China is in compliance.”
Greer stated that China has fulfilled roughly one-third of its soybean purchase obligations for the current growing season. Although Beijing placed a series of large orders in late October, the pace of purchases has since slowed.
In late October, President Trump and Chinese President Xi agreed to extend a tariff truce, roll back certain export controls, and reduce various trade barriers. Several key elements of the deal, however—such as soybean purchases, the sale of TikTok, and licensing for the export of strategic minerals—are still in progress.
On Friday, Treasury Secretary Bessent and Greer held a video call with Chinese Vice Premier He Lifeng. According to Xinhua, the discussion was “in-depth and constructive,” with both sides expressing a desire to maintain stable ties and address mutual concerns about trade and the economy.
Bessent noted on Sunday that he does not expect China to speed up soybean purchases, although they are still expected to be completed within the current crop season.

Summary
Despite inflation pressures and political tensions, the U.S. economy continues to show surprisingly strong momentum. Robust consumer spending supports growth, while trade relations with China remain stable for now. Bessent predicts that next year could bring “a shift toward prosperity”—yet voter sentiment remains uncertain, making economic perception a major variable for America’s political and economic trajectory.

#economy , #usa , #Inflation , #Bessent , #GlobalMarkets

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“