Commerce Secretary Howard Lutnick said Wednesday that U.S. interest rates will stabilize and start to decline over the next six months.

Speaking on CNBC's Squawk Box, Lutnick tied the outlook to robust economic growth above 3 percent, tariff revenues approaching $400 billion annually, and a shrinking federal deficit. He said these elements would stabilize the bond market and ease borrowing costs.

"I'm comfortable with where things are," Lutnick said. "I think what you'll see is rates stabilize and start to decline over the coming, let's say, six months."

The comments come as the effective federal funds rate sits near 3.63 percent. Inflation remains around 2.7 percent, and administration officials have highlighted recent GDP readings that exceeded expectations.

Lutnick pointed to tariff policy as a major revenue driver while noting that companies building facilities in the United States would receive relief. He also referenced semiconductor investments totaling $1.2 trillion and projected domestic production rising sharply.

Current 10-year Treasury yields hover near 4.78 percent amid recent market volatility. Lutnick said he was not concerned about the recent rise in yields, arguing that underlying fundamentals support lower rates ahead.

The remarks align with broader administration forecasts of sustained expansion fueled by tax policies, lower energy costs, and housing market relief from reduced mortgage rates. Lower borrowing costs could reduce annual federal interest payments by hundreds of billions of dollars, according to Lutnick's assessment.

Market participants will watch upcoming Federal Reserve decisions and incoming economic data for confirmation of the trajectory Lutnick described.