Treasury Secretary Scott Bessent on Thursday pushed back on concerns that have been raised about tariffs causing inflationary pressures that raise consumer prices, saying they would just lead to a one-time "price adjustment."
Bessent delivered remarks at the Economic Club of New York and participated in a question-and-answer period with FOX Business Network's Larry Kudlow in which he was asked whether tariffs are inflationary.
"Look, can tariffs be a one-time price adjustment? Yes… I would hope that the failed team transitory could get back together and think that nothing is more transitory than tariffs if it's a one-time price adjustment," Bessent said in reference to Biden administration officials saying that the historic inflation of several years ago was "transitory."
"And for those who say, 'oh, the tariffs are a tax, they're inflationary,' so you're saying taxes are inflationary, which I like to challenge a lot of my Democratic friends to," Bessent added.
Scott Bessent, US treasury secretary, speaks during an Economic Club of New York (ECNY) event in New York, US, on Thursday, March 6, 2025. Sanctions on Russia "will be used explicitly and aggressively for immediate maximum impact" at President Donald (Victor J. Blue/Bloomberg via Getty Images / Getty Images)
He also said that the Trump administration's economic policy is taking the entire government into account and noted that mortgage rates have declined along with crude oil prices since the president's election win and his subsequent inauguration, so he isn't worried about inflation overall.
"The economic program is a whole of government, holistic program, and I think that we could get a one-time price adjustment," Bessent said, adding that "across the continuum, I'm not worried about inflation."