U.S. Treasury Secretary: "Inflation Surge Is Temporary"… Stresses Impact of Iran Sanctions (Comprehensive)

Attends U.S. Senate Finance Committee Hearing
Defends Trump Administration’s Economic Policies
"Iran’s Inflation Has Exceeded 200%"

U.S. Treasury Secretary Scott Bessent dismissed market concerns over surging prices following the Iran war, calling it a "short-term blip," at a U.S. Senate Finance Committee hearing on the 3rd (local time). He further stated that, due to the effects of sanctions against Iran, the country's inflation rate is estimated to have exceeded 200%.

"Economic Indicators Very Strong, Excluding Inflation"

Scott Bessent, former U.S. Treasury Secretary, attends a hearing of the U.S. Senate Finance Committee held on the 3rd (local time), responding to lawmakers' questions. Photo by AP Yonhap News

According to the Financial Times (FT) and Fox News on June 3, Secretary Bessent attended the U.S. Senate Finance Committee hearing, defending the economic policies of U.S. President Donald Trump, and stated, "Excluding inflation, economic indicators are very strong." The hearing was held for the purpose of reviewing the Treasury's budget for the 2027 fiscal year.

He emphasized, "I see inflation as merely a short-term blip," and added, "All the conditions for a strong economy are in place. While prices are temporarily elevated right now, they will come back down."

His remarks come amid growing concerns over rising prices in the United States. According to Brown University, since the outbreak of the war, American consumers have borne an additional $5.3 billion in gasoline and diesel costs, which FT noted translates to over $400 per household. In fact, the U.S. Consumer Price Index (CPI) for April rose 3.8% year-on-year, reaching its highest level in three years.

As consumer burdens grow, public opinion for President Trump has worsened. In a Harvard CAPS-Harris poll, only 39% of respondents positively rated President Trump's economic management. In a Marquette Law School survey, the figure was just 30%, and only 22% gave a positive assessment regarding the management of living costs.

Secretary Bessent also addressed President Trump's recent remarks. Last month, in an interview, President Trump said, "I do not think about the financial situation of Americans. I only think about one thing," adding, "Iran must not be allowed to acquire nuclear weapons."

He explained, "The President's comments have been taken out of context." He continued, "I am well aware that Americans are going through difficult times," and added, "Currently, the average household is paying about $200 more in gasoline costs, but they will ultimately overcome this situation."

Secretary Bessent reiterated his clarification regarding President Trump's recent remarks. Previously, President Trump had stated in an interview last month, "I do not think about the financial situation of Americans. I only think about one thing," emphasizing, "Iran must not be allowed to acquire nuclear weapons."

On this, Secretary Bessent said, "The President's comments have been taken out of context." He stressed, "I am well aware that Americans are going through difficult times," and added, "Currently, the average household is paying about $200 more in gasoline costs, but they will ultimately overcome this situation."

"U.S. Sanctions Prevent Iranian Soldiers from Getting Paid; Police Not Showing Up for Work"

Scott Bessent, U.S. Treasury Secretary. Photo by AP Yonhap News

He further stated that the United States, through measures such as freezing Iranian regime assets, has "dealt a severe blow to the Iranian economy and its ability to wage war." He estimated that inflation in Iran has exceeded 200% and that the value of the Iranian currency has plummeted, adding that a significant number of Iranian soldiers are not receiving their salaries, and even police officers are reportedly not showing up for work at their precincts.

Secretary Bessent also explained that the Treasury's 2027 fiscal year budget includes funds to maintain a dedicated workforce to track illegal trading routes of Iranian crude oil and energy resources and to enforce related sanctions.

As the United States continues negotiations with Iran for an end to hostilities, it has tightened economic pressure on Iran through the "Economic Fury" operation, broadening sanctions on individuals and companies involved in the sale of Iranian oil and weapon production, thereby further constricting the Iranian regime's financial resources.

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