INTERNATIONAL
Treasury's Bessent says he was wrong when he said tariffs could be inflationary
US Treasury Secretary Scott Bessent told lawmakers he misjudged Trump's tariffs, saying inflation kept easing though new data suggests it may rise soon. - REUTERS/Filepic
WASHINGTON: U.S. Treasury Secretary Scott Bessent on Wednesday said he was wrong when he and his Key Square investment firm told partners in January 2024 - before U.S. President Donald Trump won the presidency - that "tariffs are inflationary."
Grilled about the document during a House Financial Services Committee hearing, Bessent said he wished to correct the record. "If I was mistaken, I want to correct it. And I was also mistaken when I said the tariffs could be inflationary."
Bessent said the U.S. economy was growing and inflation was coming down, despite a slew of tariffs imposed by Trump since taking office a year ago. "So tariff inflation was the dog that didn't bark," he told lawmakers.
U.S. data last month showed a larger-than-expected rise in the Producer Price Index in December, suggesting inflation could pick up in the months ahead.
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Grilled about the document during a House Financial Services Committee hearing, Bessent said he wished to correct the record. "If I was mistaken, I want to correct it. And I was also mistaken when I said the tariffs could be inflationary."
Bessent said the U.S. economy was growing and inflation was coming down, despite a slew of tariffs imposed by Trump since taking office a year ago. "So tariff inflation was the dog that didn't bark," he told lawmakers.
U.S. data last month showed a larger-than-expected rise in the Producer Price Index in December, suggesting inflation could pick up in the months ahead.
Your gateway to global news, insights, and stories that matter.