Treasury Secretary Busts ‘Alarmist’ Inflation Predictions

Treasury Secretary Scott Bessent challenged CBS journalist Margaret Brennan on Sunday over the potential inflationary impact of President Donald Trump’s tariffs.

In a “Face the Nation” interview, Brennan insisted “the reality is there will either be less inventory or things at higher prices, or both.” Bessent shot back, alluding to a previous conversation they had in March, days before Trump unleashed his “Liberation Day” tariffs upon the world.

“Margaret, when we were here in March, you said there was going to be big inflation. There hasn’t been any inflation,” Bessent said. “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.”

.@SecScottBessent: “When we were here in March, you said there was going to be big inflation. There hasn’t been any inflation. Actually, the inflation numbers are the best in four years. So why don’t we stop trying to say this COULD happen — wait and see what DOES happen.” ???? pic.twitter.com/1LeTZf2UX1

— Rapid Response 47 (@RapidResponse47) June 1, 2025

Earlier, Brennan told Bessent that when he was on the program in March, the two of them were “trying to gauge” how American consumers might be affected by the tariffs. She then asked the Cabinet official where he is anticipating price increases.

“We wanted to make sure that there aren’t price increases, Margaret. And thus far, there have been no price increases. Everything has been alarmist,” Bessent said, adding that the “inflation numbers are actually dropping.”

.@SecScottBessent: “We wanted to make sure that there aren’t price increases, Margaret — and thus far, there have been no price increases. Everything has been alarmist. The inflation numbers are actually dropping. We saw the first drop in inflation in four years.” pic.twitter.com/asuc8YnHYZ

— Rapid Response 47 (@RapidResponse47) June 1, 2025

A couple of weeks ago, the Labor Department released data showing that inflation hit its lowest point — 2.3% — in four years, as Trump pursues trade deals with China and other countries hit by tariffs.

Brennan pressed Bessent on retailers such as Walmart, Best Buy, and Target raising prices. In response, Bessent noted that other companies, including Home Depot and Amazon, have taken a different tack. And he pointed out, “I know what the South China Morning Post wrote within the past 24 hours that 65% — 65%! — of the tariffs will likely be eaten by the Chinese producers.”

“So are there five or eight areas that you have identified, as you said back in March, where American consumers will be able to have lower prices, or should be warned of higher prices?” Brennan asked.

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“Well, a lot of it’s already working its way through the system,” Bressent replied. “So we’ve seen a substantial decrease in gasoline and energy prices. So that’s down 20% year over year. We’ve seen the food prices go down, these notorious egg prices. Through the good work of President Trump and [Agriculture] Secretary [Brooke] Rollins, egg prices have collapsed. So we’re seeing more and more.”

He added: “And what we want to do is even that out across all sections of the economy. So inflation has been very tame. Consumer earnings were up 0.8% last month, which is a gigantic increase for one month. So real earnings minus low inflation is great for the American people, and that’s what we’re seeing.”

Brennen also questioned Bessent about the “One Big, Beautiful Bill” that passed through the GOP-led House and is now under consideration by the Republican-controlled Senate.

“In it is increase or suspension to the debt limit that you need delivered on by mid-July. How close of a brush with default could this be, given how massive some of the Senate changes are expected to be to the other parts of the bill?” Brennan asked.

“Well, first of all, Margaret, I will say the United States of America is never going to default. That is never going to happen. … We are on the warning track and we will never hit the wall,” Bessent said, adding later, “We don’t give out the X date because we use that to move the bill forward.”