By Kanishka Singh
Treasury Secretary Scott Bessent stated on Tuesday that the American economy remains strong and that growth could still exceed 3% or 3.5% this year despite the impact of the American-Israeli war against Iran.
Mr. Bessent described the reductions in global growth forecasts and higher inflation projections by the International Monetary Fund and the World Bank as an overreaction. On Tuesday, the IMF revised down its growth outlook due to the rise in energy prices resulting from the war in Iran.
“I believe the underlying economy remains strong,” Mr. Bessent said at the WSJ Opinion Live event in Washington.
“I think growth could easily surpass 3%, 3.5% again this year.”
The war has driven up oil prices and shaken markets globally. It led to the blockade of the Strait of Hormuz. Around 20% of global oil and natural gas exports passed through this strait before the war.
Mr. Bessent also discussed U.S. tariffs on other countries, suggesting they could be restored to their previous levels by July, after the Supreme Court ruled in February that President Donald Trump had exceeded his authority by imposing global tariffs under an emergency law.
“Tariffs could be restored to their previous level by early July,” he said, referring to the options pursued by the Trump administration, such as investigations under the 1974 Trade Act.
