### Treasury Secretary Bessent and CBS Journalist Brennan Spar Over Inflation Concerns Amid Tariffs

In a recent "Face the Nation" appearance, Treasury Secretary Scott Bessent found himself in a heated exchange with CBS journalist Margaret Brennan regarding the potential inflationary effects of President Donald Trump's tariffs. Brennan expressed concerns that American consumers might face limited inventory or increased prices as a result of the tariffs. However, Bessent pushed back, reminding her of their previous discussion in March where she had predicted significant inflation, which has not materialized.

"Margaret, when we were here in March, you said there was going to be big inflation. There hasn't been any inflation," Bessent emphasized during the interview. "Actually, the inflation numbers are the best in four years. So why don't we stop trying to say this could happen, and wait and see what does happen."

Brennan had earlier noted that the conversation in March was an attempt to gauge the potential impact of the tariffs on American consumers. She then queried Bessent on where he anticipates price hikes might occur. In response, Bessent maintained that so far, price increases have not been observed, dismissing previous warnings as alarmist. "The inflation numbers are actually dropping," he affirmed, noting that recent data from the Labor Department showed inflation had reached its lowest point in four years, standing at 2.3%.

Brennan also questioned the potential impact on major retailers like Walmart, Best Buy, and Target that have raised prices. Bessent countered by citing examples of other companies such as Home Depot and Amazon, which have not followed suit. He also referenced a report from the South China Morning Post suggesting that a significant portion of the tariffs—around 65%—are likely to be absorbed by Chinese producers.

The discussion further delved into specific sectors where price changes have already been observed. Bessent highlighted reductions in gasoline, energy, and food prices as evidence of the tariffs' limited inflationary impact. He noted a 20% year-over-year decrease in gasoline prices and a drop in notoriously high egg prices, attributing these decreases to the efforts of President Trump and Agriculture Secretary Brooke Rollins.

In addition to inflation, the conversation touched on the "One Big, Beautiful Bill" passed by the GOP-led House and awaiting consideration in the Senate. Brennan sought Bessent's perspective on managing the national debt limit, particularly given expected Senate changes to the bill. Bessent reassured, "The United States of America is never going to default. That is never going to happen.... We are on the warning track and we will never hit the wall."

Bessent’s confidence in the face of Brennan's challenging questions highlighted the Trump administration's stance that the current economic strategies, including tariffs, are under control and working to the benefit of American consumers. The Secretary concluded by emphasizing the positive trend in consumer earnings, which grew by 0.8% last month, and the overall stability of the economy amidst these measures.