WASHINGTON, D.C. — Treasury Secretary Scott Bessent outlined an economic plan targeting 3% growth, a 3% deficit-to-GDP rate, and a three million barrels per day increase in domestic oil production. "We can have something with a three in front of it this year," Bessent said. "The underlying economy has been strong."

Bessent indicated optimism about longer-term economic prospects, stating, "I think by the end of the president's term we can be at something that looks like it could have a three in front of it." He said that reaching a 3% deficit-to-GDP rate is important because, "What's important about that, that's when you start paying down overall debt as a percent of the economy."

The U.S. economy recorded 2.1% growth in 2025. U.S. gross domestic product rose at a 0.5% annualized rate in the fourth quarter of 2025, and at a 1.6% annualized rate in the first quarter of 2026. The U.S. deficit-to-GDP ratio was above 6% in both 2023 and 2024, before decreasing to 5.8% at the end of 2025. The U.S. budget shortfall through the first eight months of fiscal year 2026 reached $1.25 trillion, which represents a 9% decrease compared to the prior year. Financing costs currently constitute the largest federal budget outlay after Social Security.

The Federal Reserve has not implemented additional interest rate cuts during an inflation surge in 2026. President Donald Trump has advocated for the Federal Reserve to lower benchmark interest rates. Kevin Warsh serves as the Federal Reserve Chairman.