Treasury Secretary Scott Bessent defended the Trump administration's handling of inflation and affordability, dismissing concerns over recent consumer price increases and forecasting relief for American households ahead of the holidays.
The Cheapest Thanksgiving ‘In Four Years’
On Sunday, Bessent said, “We are starting to see the affordability” while speaking on NBC’s “Meet The Press,” noting that economic conditions have been improving significantly under President Donald Trump, while pointing to home sales, gasoline prices, and anticipated declines in health care costs.
“We're having Thanksgiving week. This will be the lowest cost for a Thanksgiving dinner in four years,” he said, adding that “Turkey prices are down 16%.”
See Also: Tariffs May Lower Inflation But Could Trigger A Sharp Rise In Joblessness, New Fed Research Suggests
Bessent pushed back against the narrative that prices had spiked in recent months. He said, “Inflation hasn't gone up,” adding that people were just “traumatized” over the inflationary pressures they experienced during former President Joe Biden.
He also claimed that prices varied across U.S. states due to policy differences. “The Council of Economic Advisers has a study,” he said, adding that for consumers, the best way to reduce their inflation was to “move from a blue state to a red state,” since inflation in Democrat run Blue states was “half a percent higher.”
Bessent said that price pressures will continue to alleviate going forward, adding that “Some are going to come down in weeks. Some are going to come down in months.”
Inflation Is ‘Not Dead’
Inflationary pressures have cooled in recent months, with the Consumer Price Index rising just 0.3% month-over-month in September, compared to 0.4% in August.
However, leading economists have pushed back against the Trump administration’s claims of eliminating inflation and bringing prices down.
Economist Peter Schiff slammed Trump for prematurely taking “credit for eliminating inflation,” even as consumers across the nation continue to struggle with high prices. Schiff warned that “Not only is inflation not dead,” but the average rate under Trump could exceed that under Biden, owing to the former’s tariff policies.
Moody’s Chief Economist Mark Zandi has said, “Inflation is uncomfortably high and is set to accelerate further in the coming months,” owing to Trump’s tariffs that are impacting prices across product categories.
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