Treasury Secretary Scott Bessent Celebrates Low Inflation Amid Tariff Debates
In a recent televised interview, Treasury Secretary Scott Bessent expressed confidence in the latest inflation numbers, noting that key benchmarks have dropped to a four-year low. This data is seen by many as a validation of the Trump administration’s trade policies, particularly its tariff strategy, which some critics had claimed would lead to rising prices for consumers.
During his appearance on CBS’ “Face the Nation,” Bessent confronted host Margaret Brennan regarding her earlier concerns about potential inflation stemming from the tariffs. He recalled a previous discussion where she mentioned that significant inflation was likely. “Margaret, when we were here in March, you said there was going to be big inflation. There hasn’t been any inflation,” Bessent remarked, pointing out the steadiness in consumer prices.
The recent statistics reveal that consumer prices rose just 2.3% year-over-year in April, a slight decrease from 2.4% in March. This marks the slowest rate of inflation in over four years, suggesting that fears surrounding tariffs may be unfounded. Last month also saw Trump announce, then temporarily pause, major tariffs, which many economists believe could still yield mixed results in the upcoming months.
Bessent took the opportunity to highlight that instead of speculating on hypothetical outcomes, it would be wise to simply observe how the situation unfolds. “Actually, the inflation numbers are the best in four years. So why don’t we stop trying to say this could happen, and wait and see what does happen?” he said, asserting the positive impact of current policies.
Brennan continued to press Bessent on criticisms highlighted in a Wall Street Journal column by prominent Republican strategist Karl Rove. Rove’s concerns focused on how tariffs could potentially threaten the GOP’s control in Congress. However, Bessent remained optimistic, emphasizing the current trend in inflation and downplaying alarmist predictions from some economists.
The discussion around tariffs has not been without controversy. Critics worry about the long-term effects tariffs might have on consumer goods. Bessent dismissed one notable study from the Peterson Institute as overly dramatic, labeling it “alarmist.”
In addition to addressing inflation, Bessent defended the Trump administration’s broader economic strategies aimed at supporting working-class Americans. He mentioned that a new “affordability czar” would be tasked with identifying key areas where the administration could make substantial improvements for everyday citizens.
Further praising the administration’s measures, Bessent noted that prices for essential items like energy, eggs, and food have all begun to decline. He also referenced a report indicating that Chinese suppliers might absorb a significant portion of the costs associated with tariffs, potentially alleviating pressure on American consumers.
On the subject of trade relations with China, Bessent clarified that the administration’s goal is not to sever ties, but rather to “de-risk” those relationships. He explained that past global events, such as the COVID-19 pandemic, highlighted vulnerabilities in American supply chains. “What we are trying to do is to de-risk. We do not want to decouple…but we do need to de-risk,” he stated, emphasizing the need for a reliable partnership in critical sectors.
Bessent’s remarks underscore the administration’s commitment to strengthening the American economy while navigating the complex landscape of international trade. He criticized China’s recent behavior, indicating that they are withholding essential products for various industrial supply chains, which he described as unreliable.
As the country moves forward, Bessent remains hopeful that the administration’s policies will continue to foster a stable economic environment, easing worries about inflation and reinforcing America’s economic standing on the global stage.
