Scott Bessent Denies Tariffs Cause Inflation

Bessent Attributes Inflation to Service Economy

Scott Bessent, U.S. Treasury Secretary under Trump, denied tariffs cause inflation during a Meet the Press interview on November 23, 2025, attributing price increases to the service economy.

The statement prompts debates about tariff impacts on inflation, challenging previous economic assumptions amid U.S. macroeconomic policy discussions.

Bessent Attributes Inflation to Service Economy

Scott Bessent, U.S. Treasury Secretary, recently stated that inflation stems from the service economy, not tariffs. In an interview, he robustly defended this viewpoint, contrasting current economic dynamics with previous policies. He stated,

โ€œINFLATION IS UP BECAUSE OF THE SERVICE ECONOMY AND SERVICES SO THAT HAS NOTHING TO DO WITH TARIFFS.โ€
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Bessent highlighted recent price hikes in certain food items, while denying a tariff-driven inflation link. He emphasized that tariffs have fostered domestic industry growth, aligning with Trumpโ€™s economic strategy.

Market Analysts Review Bessentโ€™s Inflation Claim

Market observers note that Bessentโ€™s comments align with Trumpโ€™s economic strategy to boost domestic investments. However, some analysts argue that the service sector inflation claim requires careful evaluation.

Economists are closely monitoring for any potential policy shifts following Bessentโ€™s comments. His assertion suggests a broader narrative framework focusing on service sector inflation instead of traditional tariff impacts.

Trump-Era Tariffs Largely Spared Inflation Impact

Historically, tariff implementations under Trump led to domestic investment surges without direct inflationary effects. This contrasts with the Biden administrationโ€™s approach, which saw a different inflation trajectory.

Analysts from Kanalcoin note that while the service sector might explain part of the inflation narrative, the complex economic landscape requires multidimensional analysis, particularly concerning trade policies and global market dynamics.

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