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Bessent Pushes 3% Growth Goal as Markets Put Low Odds on It

Low market odds with rising inflation put Federal Reserve policy under Kevin Warsh to the test over whether the Treasury’s target is realistic.

Overview

  • Treasury Secretary Scott Bessent reiterated his “3-3-3” plan on Wednesday, June 24, saying the U.S. can reach 3% GDP growth this year and promising a 3% deficit-to-GDP target plus more oil production.
  • Traders on the CFTC-regulated prediction market Kalshi assign roughly 14.2% odds that 2026 GDP will land in the 2.6–3.0% range and place the highest probability on growth between about 1.6% and 2.5%.
  • Official data show real GDP rose at a 1.6% annualized rate in Q1 2026 and the Consumer Price Index rose 0.5% month-over-month and 4.2% year-over-year in May, numbers that make a full-year jump to 3% a steep climb.
  • Bessent tied his optimism to confidence in new Fed Chair Kevin Warsh, but persistent 4.2% inflation increases the chance the Fed will prioritize price stability in ways that could slow growth.
  • Fiscal pressures leave the deficit high (about 5.8% of GDP at end-2025 and a $1.25 trillion shortfall through eight months of FY2026), Kalshi prices put only about a 13% chance the deficit falls below 5% this year, and upcoming Q2 GDP and inflation prints will be decisive for whether markets or the Treasury view the outlook as more likely.