Prices have leveled off and will start coming down, Bessent says
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Treasury Secretary Scott Bessent addresses reporters outside the White House. Photo: Andrew Harnik/Getty Images
Prices are not that high and are already coming down, Trump administration officials argued Sunday, amid mounting outrage at the affordability of everyday goods.
Why it matters: The administration is trying to climb out of the same hole that trapped former President Biden and his team: You can't convince people the economy's strong if they're paying more for almost everything they buy.
Catch up quick: Voters delivered resounding defeats to GOP candidates for governor in New Jersey and Virginia this week, with exit polls showing voters focused on the economy preferred Democrats.
- That's not how it usually works; voters typically trust Republicans over Democrats on economic issues.
- "I don't want to hear about the affordability," President Trump said Thursday at the White House, when asked about the elections and consumers' concerns about paying for groceries.
What they're saying: "We had to stop the increase first, now we are starting to see prices level off, come down," Treasury Secretary Scott Bessent said on ABC's "This Week," specifically citing lower gas prices, interest rates and mortgage rates.
- He also argued that any price pressure was an ongoing consequence of Biden-era inflation, which the administration is now addressing.
- "I think we are making substantial progress on that, and I think over the coming months and the next year, prices are going to come down."
Yes, but: The government's own data shows many consumer prices rising, not falling.
- Prices for some key foodstuffs, like beef and coffee, are up double digits year over year.
- About 70% of Americans say they're spending more on groceries now than a year ago.
The other side: No, they're not, at least according to another administration official.
- "Grocery prices are actually down significantly under Trump," National Economic Council director Kevin Hassett said on CBS's "Face the Nation."
- Hassett argued that real spending power has risen this year, though not as much as he said it fell during the Biden administration. He also claimed inflation was "closer to zero," though he didn't cite any public sources or datasets.
- "People are right to feel stretched, but we're making progress," he said.
The bottom line: With the government shut down, there's no official data on prices and inflation.
- That leaves only vibes to go on, and so far, they're not good.
Editor's note: This story has been updated with additional detail from the interview with Secretary Bessent.
