U.S. Treasury Secretary Scott Bessent defended the Trump administration’s handling of inflation and the affordability crisis, which he said was inherited from the previous administration led by President Joe Biden.
Trump ‘Inherited’ This Crisis
On Sunday, in a post on X, Bessent said that “When President Trump took office, Americans were experiencing an affordability crisis from the Biden administration,” while adding that inflation, alongside gas prices and rent, have been easing in recent months, which he counts as real progress made by the administration for “hardworking families.”
The post includes a snippet of Bessent’s recent appearance on NBC News’ “Meet the Press,” where he was pressed about persistent price increases under the administration of President Donald Trump.
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Bessent pushed back against this claim, calling it a result of cherry-picking. He said, “Egg prices are down, gasoline prices are down, and overall inflation since President Trump has come in has come down.”
Citing the latest inflation data, Bessent said that the broader picture was improving. “This month's inflation number was actually below the consensus number,” he said. “If we look at core inflation, it was 0.2%, which is the lowest it has been in a long time.”
Bessent said that inflation was a “composite number,” meaning it reflects a broad basket of goods and services, while adding that “You don't get to cherry-pick.” He said that this broader inflationary trend “is going to continue to ease,” over the next couple of months.
Inflation Eases In September
Inflation picked up slightly in September, but came in softer than expected, with the headline Consumer Price Index rising 3% year-over-year, just modestly above August's 2.9% but below the 3.1% consensus forecast by economists.
The markets witnessed a sharp rally following this release, as it paves the way for most rate cuts by the Federal Reserve, with the Federal Open Market Committee set to meet on Tuesday and Wednesday this week.
This comes just a week after the Fed’s latest Beige Book report warned that Trump’s tariffs were resulting in higher costs for businesses, and while some were absorbing the costs, others are “fully passing higher import costs along to their customers.”
Photo Courtesy: Maxim Elramsisy On Shutterstock.com
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