On Tuesday (December 16), U.S. Treasury Secretary Bessent expressed optimism about the economic outlook, projecting full-year GDP growth of 3.5% for 2025 and voicing confidence in the prospects for American workers next year.

He forecast a significant decline in inflation during the first half of 2026, alongside a substantial drop in rental costs. While acknowledging current high price levels, he emphasized that rising real wages would address the issue, improving households' purchasing power.

Bessent also revealed that President Trump is expected to announce the nominee for Federal Reserve Chair in early January, with one or two final interviews possibly taking place this week. This critical appointment will shape U.S. monetary policy for years to come, drawing intense market scrutiny.

Dismissing concerns about the future Fed chair's independence, Bessent stated that Trump has been straightforward in discussing policy matters during interviews. He affirmed the strong qualifications of candidates Warsh and Hassett, rejecting claims that "Hassett would lack influence at the Fed."

Separately, Bessent called for Congress to halt stock trading by lawmakers.

**Growth and Inflation Outlook** Bessent's 3.5% GDP growth projection for 2025 reflects robust economic expectations. He remains optimistic about U.S. labor conditions in the coming year.

Regarding inflation, he anticipates a sharp slowdown in price increases and housing costs by early 2026. While recognizing elevated prices, he stressed that real wage growth would effectively counterbalance the impact, delivering tangible improvements in consumer purchasing power.

**Fed Chair Announcement Imminent** Bessent indicated the Fed chair nomination will likely be finalized in early January, with additional interviews potentially concluding this week.

He firmly denied speculation about compromised Fed independence under the new leadership, noting Trump's direct engagement on policy questions during interviews. Both Warsh and Hassett were described as highly qualified candidates, with Bessent specifically rebutting assertions about Hassett's potential lack of influence at the central bank.

Updates to follow.