Treasury Secretary Scott Bessent said on Sunday that the 2025 holiday shopping season is off to a “very strong” start, expressing confidence that the U.S. economy will conclude the year in solid shape.

Speaking on CBS News’ “Face the Nation,” Bessent noted that economic performance has exceeded expectations. “The economy has been better than we thought. We’ve had 4% GDP growth in a couple of quarters,” he said. “We’re going to finish the year, despite the Schumer shutdown, with 3% real GDP growth.”

Data from the Bureau of Economic Analysis shows that gross domestic product declined 0.6% year-over-year in the first quarter of 2025. However, the economy rebounded in the second quarter, posting a 3.8% increase. Initial BEA estimates for third-quarter growth are expected on December 23. The latest projection from the Federal Reserve Bank of Atlanta, as of December 5, anticipates third-quarter annual GDP growth at around 3.5%.

Despite these indicators, Americans have remained skeptical about the overall state of the economy. Consumer spending—responsible for nearly 70% of total U.S. economic activity—continues to be shaped by household concerns about rising costs. The University of Michigan’s December consumer sentiment index registered at 53.3. Although this represents a 4.5% increase from November, it remains 28% lower compared to the same period last year.

Inflation also remains a point of pressure. The most recent inflation report, delayed due to the federal government shutdown, showed consumer prices rising 3% year-over-year in September. The cost of food purchased for home consumption rose by 3.1%, underscoring the ongoing strain on household budgets.

Amid these economic challenges, President Donald Trump has resisted the idea that Americans are facing widespread affordability issues. During a cabinet meeting on Tuesday, he argued that Democrats were using affordability concerns as a political tactic. “The word ‘affordability’ is a con job by the Democrats,” Trump said. “The word ‘affordability’ is a Democrat scam.”

In recent months, voter sentiment has reflected dissatisfaction with the administration’s handling of economic conditions. A recent NBC News poll shows that roughly two-thirds of registered voters believe the Trump administration has not adequately addressed the economy and the rising cost of living.

Responding to questions about Trump’s remarks, Bessent said the current administration is still dealing with lingering inflationary pressures from the Biden era. He also suggested that media narratives contribute significantly to public perceptions of economic stress.

“The American people don’t know how good they have it,” Bessent said. “Democrats created scarcity, whether through energy policies or excessive regulation. That’s what led to today’s affordability challenges. I believe next year we’ll move from these concerns toward genuine prosperity.”