"A House Financial Services Committee hearing descended into chaos and personal invective on Tuesday as Treasury Secretary Scott Bessent clashed with Ranking Member Maxine Waters (D-CA) over the economic impact of President Trump's tariff policies. The heated exchange, ostensibly about inflation and housing costs, culminated in a tense standoff where Waters repeatedly silenced the Secretary, telling him, "You don't get to talk," and questioning his dignity as he attempted to interrupt her line of questioning."
"Bessent's denial came despite reporting dating back at least a year, as noted by The Wall Street Journal's Nick Timiraos on X, that the Treasury Secretary wrote that exact sentiment in February 2024. "Tariffs are inflationary and would strengthen the dollar," Bessent wrote to his hedge fund's investors. "Hardly a good starting point for a US industrial renaissance ... the tariff gun will always be loaded and on the table but rarely discharged.""
"Waters pointed to a New York Times article citing Bessent's testimony before a Senate committee the previous summer, in which he allegedly claimed, "there is no inflation, tariffs are not being passed on to consumers," and dismissed critics as suffering from "tariff derangement syndrome." Waters sought to clarify the Secretary's current stance, asking plainly whether tariffs drive up costs. Bessent pushed back, citing the San Francisco Federal Reserve and "150 years of data" to argue that "tariffs do not cause inflation.""
Treasury Secretary Scott Bessent and Rep. Maxine Waters engaged in a heated House Financial Services Committee confrontation over the inflationary effects of tariffs. Waters repeatedly interrupted and silenced Bessent while challenging an apparent change in his public stance and citing past statements and reporting that linked him to warnings that tariffs raise costs. Bessent denied the specific claim but pointed to San Francisco Fed research and long-term historical data to argue that tariffs do not cause inflation. The exchange included direct accusations, contrasting public statements, and escalated to personal invective and a tense standoff.
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