Bessent Clashes with Democrats in House Hearing on Policies

In a contentious House Financial Services Committee hearing on Wednesday, U.S. Treasury Secretary Scott Bessent clashed repeatedly with Democratic lawmakers over the Trump administration's economic policies, including tariffs, inflation, housing affordability, and Federal Reserve independence. The session, chaired by Rep. French Hill, R-Ark., and led in questioning by ranking member Rep. Maxine Waters, D-Calif., devolved into shouting matches and interruptions as Bessent defended the administration's positions.

The hearing began with Waters pressing Bessent on his past statements about the inflationary effects of tariffs. She referenced a January 2024 letter Bessent wrote to investors, in which he described tariffs as inflationary and likely to strengthen the dollar. Waters also cited his testimony before a Senate committee last summer, where he stated that tariffs were not passed on to consumers and dismissed critics as suffering from "tariff derangement syndrome." When asked directly if tariffs are inflationary, Bessent initially replied no, aligning with views from the San Francisco Federal Reserve. He later acknowledged that if he had previously called tariffs inflationary,...