The U.S. economy has so much to handle all at once. From rising oil prices, geopolitical tension, and fresh inflation concerns. Yet one of the country’s top economic officials just delivered a message that might be different from most people’s.
Scott Bessent, Treasury Secretary, said the underlying U.S. economy remains strong and could grow faster than many expect in 2026, even as the global outlook darkens.
Speaking during a Washington event and later in a CNBC interview, Bessent pushed back on recent downgrades from global institutions, arguing that the current narrative may be too pessimistic.
“I think the underlying economy remains strong,” Bessent said at WSJ Opinion Live in Washington, D.C., on April 14. “I do think that the growth could easily exceed 3%, 3.5% this year, still.”
That’s a bold claim. Especially as the ongoing Middle East conflict continues to ripple through global markets and energy supply chains.
Scott Bessent pushes back on recession fears and IMF outlook
Bessent’s comments come just as global organizations revise their expectations downward. The International Monetary Fund (IMF) recently cut its global growth outlook. On 19th January 2026, the IMF reported that global growth is projected at 3.3 percent for 2026 and 3.2 percent for 2027.
Now, the IMF has revised the 2026 growth forecast down to 3.1% in 2026 and 3.2% in 2027, citing the “war in the Middle East,” which has disrupted energy markets and supply routes. The World Bank has also flagged rising inflation risks, citing that inflation is projected to rise to 4.8% in 2026.
At the center of the disruption is the Strait of Hormuz. A critical chokepoint that previously handled nearly 20% of global oil and gas flows. Its partial shutdown has sent fuel prices higher and increased volatility across markets. Despite that backdrop, Bessent believes the reaction may be overstated.
Related: IMF raises red flag on world economy
Speaking at CNBC’s “Invest in America Forum” in Washington, D.C., on Wednesday, April 15, he pointed to strong “micro data” insights gathered from companies and real-time economic activity as evidence that the economy is holding up better than expected.
“But we talked to a lot of companies, and we formed a macro view by talking to micro data points. And the micro data points have been great.” Bessent said.
That view aligns with recent signals from major banks, which have reported steady consumer spending even as costs rise.
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Bessent says inflation concerns may ease faster than expected
One of the biggest fears tied to rising oil prices is inflation. Higher energy costs often ripple across the economy, affecting everything from transportation to food prices. But Bessent struck a more optimistic tone.
He argued that many inflation pressures are already easing beneath the surface, even if official data hasn’t caught up yet.
“We’re seeing groceries start to come down. We’re seeing healthcare start to come down,” he said during the interview, noting that key measures like Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) tend to lag real-time trends.
Related: How Inflation Adjustments Are Changing Seniors’ Tax Bills This Year
He also highlighted falling rent-related costs. A major component of inflation, which could take months to show up in official reports. Even in areas like fertilizer, where prices have risen, Bessent suggested the impact may be delayed and manageable.
Could inflation still spike later? Possibly. But for now, he sees more downward pressure than upward risk.
Energy prices remain a wildcard for the economy
Still, energy markets remain the biggest uncertainty. The conflict has already pushed oil prices higher, raising concerns about gasoline costs and consumer spending. But Bessent believes relief could come sooner than expected.
“The gas prices will start coming down pretty quickly,” he said, pointing to recent declines over the past two weeks.
He added that the Treasury is closely monitoring pricing behavior at retail gas stations to ensure consumers benefit as prices fall. That matters because energy costs don’t just affect inflation. They also influence consumer confidence and spending, which are key drivers of economic growth.
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Beyond energy, Bessent also flagged potential changes in trade policy. He suggested that U.S. tariffs could return to previous levels as early as July, according to Bloomberg. That follows a US Supreme Court ruling that limited the administration’s authority to impose sweeping duties under emergency powers.
The administration is now exploring alternative routes, including measures under Section 301 of the Trade Act of 1974. That could reintroduce another layer of complexity for global trade, and for businesses already navigating higher costs and supply chain disruptions.
Markets show resilience even as risks build
Despite the uncertainty, financial markets are showing surprising strength. The S&P 500 is on track to hit new highs, while the Nasdaq Composite continues to climb. Bank earnings have reinforced this resilience, with firms like Bank of America noting that consumer spending remains solid in March.
Still, not all sectors are immune. Luxury brands, including Hermès, have shown signs of weakness, raising questions about discretionary spending as costs rise.
Related: UBS Resets 2026 S&P 500 target
Meanwhile, official data paints a more mixed picture. Data from the Bureau of Economic Analysis shows that the U.S. economy grew just 0.5% in the fourth quarter, according to the third estimate released on April 9, 2026.
That gap between strong real-time signals and softer headline data is exactly where Bessent’s argument sits.
So what’s next?
Don’t underestimate the strength of the U.S. economy. Even with geopolitical shocks, rising energy prices, and policy uncertainty, Bassent believes the foundation remains solid, and growth could surprise to the upside.
For you as a consumer, that could mean a more stable job market and easing inflation pressures over time. If you are an investor, that suggests the current wave of caution may not fully reflect what’s happening beneath the surface.
Related: Wells Fargo CEO drops 3-word warning on economy
