U.S. Treasury Secretary: "Inflation Surge Is a Short-Term Blip," Disputes Fed Assessment

Defending the Trump Administration's Economic Policies

Scott Bessent, U.S. Treasury Secretary, dismissed market concerns on the 3rd (local time), describing the surge in prices caused by the aftermath of the Iran war as a "short-term blip."

According to the Financial Times (FT) that day, Secretary Bessent attended a Senate Finance Committee hearing, defended President Trump's economic policies, and said, "Except for inflation, the economic indicators are very strong."

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He emphasized, "I believe inflation is merely a short-term blip," adding, "All the conditions for a strong economy are in place. While prices are temporarily elevated, they will come down again."

These remarks come amid growing concerns both inside and outside the Federal Reserve (Fed) that inflation is facing upward pressure, as energy prices have surged due to the fallout from the war.

According to Brown University, the additional gasoline and diesel costs borne by U.S. consumers since the outbreak of the war amount to 53 billion dollars. FT pointed out that, per household, this translates to more than 400 dollars. In fact, the U.S. Consumer Price Index (CPI) in April rose by 3.8% compared to the same period last year, marking the highest level in three years.

As the burden on consumers grows, public sentiment toward President Trump appears to be worsening. In a Harvard CAPS-Harris poll, only 39% of respondents gave a positive assessment of President Trump's economic management. A Marquette Law School survey found that the figure was just 30%, and, in particular, only 22% viewed his handling of the cost of living positively.

Secretary Bessent also clarified President Trump's recent remarks. In an interview last month, President Trump said, "I do not think about the financial situation of Americans. There is only one thing I think about," emphasizing, "Iran must not be allowed to acquire nuclear weapons."

Regarding this, Secretary Bessent explained, "The President's remarks were taken out of context." He continued, saying, "I am fully aware that the American people are going through a difficult time," and added, "Currently, the average household is paying about 200 dollars more for gasoline, but ultimately, we will overcome this situation."

This content was produced with the assistance of AI translation services.