US Treasury chief Bessent says US growth may exceed 3% or 3.5% this year despite Iran war
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US Treasury Secretary Scott Bessent has cast cuts in global growth forecasts by the IMF and World Bank as an over-reaction.
PHOTO: BLOOMBERG
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WASHINGTON - US Treasury Secretary Scott Bessent said on April 14 that the underlying US economy remained strong and that growth could still exceed 3 per cent or 3.5 per cent this year despite the impact of the US-Israeli war on Iran.
He has cast cuts in global growth forecasts and higher inflation projections by the International Monetary Fund and World Bank as an over-reaction.
The IMF on April 14 cut its growth outlook due to Iran war-driven energy price spikes.
“I think the underlying economy remains strong,” Mr Bessent said during the WSJ Opinion Live event in Washington. “I do think that the growth could easily exceed 3 per cent, 3.5 per cent this year, still.”
The war has raised oil prices and shaken markets globally. It has led to the blockade of the Strait of Hormuz.
Roughly 20 per cent of global oil and natural gas exports were shipped through the strait before the war.
Mr Bessent also commented on US tariffs on other nations, saying they could be back in place to previous levels by July after the Supreme Court ruled in February that President Donald Trump overstepped his authority in imposing sweeping global duties under an emergency law.
“The tariff could be back in place at the previous level by beginning of July,” he said, referring to options being pursued by the Trump administration such as probes under Section 301 of the Trade Act of 1974. REUTERS
