- Key insight: Treasury Secretary Scott Bessent said he believed the recent bout of inflation was temporary and that inflation would ease over time, saying inflation is overall better than it was under former President Biden.
- Supporting data: Inflation rose by 3.8% in April on an annual basis, due to high energy costs related to the conflict with Iran.
- Expert quote: "Except for inflation, which is, I believe, going to be a short-term blip, the economic data is very strong," Bessent said.
Treasury Secretary Scott Bessent on Wednesday called inflation a "short-term blip," when asked whether he worries about Americans' financial distress at a Senate Finance Committee hearing.
In an exchange with Sen. Maggie Hassan, D-N.H., who argued that families in her state were paying more for everyday goods, Bessent said that inflation had moderated significantly under Trump when compared with the inflationary highs experienced coming out of the COVID pandemic.
"Except for inflation, which is, I believe, going to be a short-term blip, the economic data is very strong," Bessent said. "Americans are paying 2.5% more for groceries since President Trump took office, which is half the annual amount under the Biden administration."
Senators repeatedly pressed the chief economic policymaker on rising prices at a time when economic data shows persistent inflation and declining approval of the Trump economy. A Bureau of Labor Statistics report last month showed the
Senator Hassan argued that her constituents are feeling the strain of higher prices, and pointed to a reduction in manufacturing jobs in response.
"When's the last time you were in a grocery store?" Hassan pressed. "The average Granite Stater has paid $3,000 more since Donald Trump took office for basic goods and services. Meanwhile, the country lost 100,000 manufacturing jobs in 2025. … Do you tell the president this information or not?"
Bessent also responded to questions about President Trump's recent comment that he does not "think about Americans' financial situation" when asked about whether Americans' finances motivate his efforts to secure a peace deal with Iran. He argued the president's words were taken out of context and said he does think about Americans' financial situations.
Bessent also faced questions about the administration's apparent reversal on creating a $1.8 billion
During the hearing, Democrats pressed Bessent about the settlement, and Bessent repeatedly declined to discuss details of the agreement, citing ongoing litigation.
"As we've done throughout this matter, the Department of Treasury is following the direction of the Department of Justice, and as you noted, acting Attorney General Todd Blanche testified yesterday that the government will not be moving forward with the fund," Bessent said. "We intend to comply with that direction … I do not have any additional details [as] to what that means at this time."
While the administration is reversing course on the fund, the Justice Department appears to be leaving in place the portion of the settlement that granted President Trump, his family, and affiliated businesses immunity from Internal Revenue Service audits for all returns filed before May 19, 2026.
Bessent said the Treasury and the IRS were following the direction of the Justice Department, including acting Attorney General Todd Blanche. Blanche's statement came just days after U.S. District Judge Leonie Brinkema temporarily blocked the fund in late May.
Bessent repeatedly said that the Treasury and the IRS — which he is currently running in a temporary capacity — were represented by the Justice Department throughout the matter and asked lawmakers to direct their questions to the DOJ, citing attorney-client privilege.
"As with all department litigation, the Department of Treasury and the IRS were represented by the Justice Department," Bessent said. "So any additional questions about the settlement or the fund should be addressed to the Justice Department and acting Attorney General Todd Blanche."
"We understand that these are challenging times for the American people, that we will get over this, and that at present the average household has paid about $200 more in gasoline," Bessent said. "We think about this every day."
