Tariffs do not cause inflation, says Treasury Secretary Scott Bessent

• Rep. Waters questioned Secretary Bessent on his past statements regarding tariffs and inflation, citing a 2004 letter and 2019 Senate testimony.
• Waters argued that Trump administration tariffs on goods like coffee, bananas, lumber, steel, and appliances have raised prices for American consumers and worsened the housing crisis.
• Secretary Bessent denied that tariffs cause inflation, referencing data from the San Francisco Federal Reserve.

Treasury Secretary Scott Bessent testified before the House Financial Services Committee, facing questions from Rep. Maxine Waters regarding the inflationary impact of tariffs. Waters accused Bessent of contradicting previous statements and highlighted how tariffs have increased consumer prices and exacerbated the housing crisis. Bessent maintained that tariffs do not cause inflation, citing historical data.