Scott Bessent on inflation
From Bessent testifies before House on Treasury Department priorities, budget · · The Hill
“Congress, let's look at a little bit of history. And this is MIT's numbers, not my numbers. MIT believes that almost 50% of the inflation we saw during the Biden era was due to the size of the deficits. So, first of all, for the American people, not only does it affect the interest rates, our ability to issue debt, it also affects inflation. When you have these roaring deficits, the money goes into the economy. And what the Biden administration did was they injected you had a demand shock through giveaways, but then you constricted supply the with the regulatory state and that's how you get inflation. And this administration is doing the opposite. We had a fiscal we had a fiscal contraction for calendar year 2025 and as I said earlier, we are cutting regulations. So we are increasing supply the whether it is energy for services. So that is why core inflation is down more than half a percent since President Trump came in.”
On , Scott Bessent, Treasury Secretary at US Treasury, spoke about inflation during Bessent testifies before House on Treasury Department priorities, budget on The Hill.
About Scott Bessent
Treasury Secretary Scott Bessent has been active in promoting the Trump administration's economic policies, including tax cuts and a new savings program for foster youth. In June 2026, Bessent joined First Lady Melania Trump to announce "Fostering the Future" accounts, a dedicated savings and investment vehicle for children in foster care. Bessent described the accounts as a "historic new savings tool" and stated that every American child born between January 2025 and December 2028 would be eligible for a $1,000 seed contribution from the Treasury. He said that, assuming historical growth rates, the deposit could grow to at least half a million dollars by retirement age. Bessent also testified before the House Ways and Means Committee, where he defended the "no tax on overtime" provision and the "working families tax cuts," arguing that they benefit middle-class and lower-income earners. He stated that 96% of filers claiming the overtime deduction earn under $200,000 annually. Bessent faced sharp questioning from Democratic lawmakers during multiple congressional hearings. In May and June 2026, he was pressed on topics including the economic impact of tariffs, a settlement involving President Trump's IRS audits, and the creation of a proposed $250 bill featuring Trump's image. Bessent declined to answer questions about the IRS settlement, citing ongoing litigation and attorney-client privilege, and deferred to the Department of Justice. When questioned about a reported effort to design a $250 bill with Trump's portrait, Bessent acknowledged that federal law prohibits the image of a living person from appearing on U.S. currency. He also defended the administration's sanctions policy on Russia, stating that the Biden administration's sanctions were "weak" and that the current approach has kept global energy prices lower.