US Treasury Secretary Bessent defends Trump’s economic agenda in heated hearing

US Treasury Secretary Scott Bessent appeared before the House Ways and Means Committee to defend President Donald Trump’s economic agenda, emphasizing tax cuts, wage growth, and job creation as key achievements. During the hearing, Bessent highlighted that $325 billion in tax relief was delivered this filing season, with an 11% increase in average refunds and over 62 million filers claiming at least one of the administration’s tax measures. He noted that 70% of those receiving tax cuts earned less than $100,000 annually, framing the policies as beneficial to working Americans. Democrats challenged Bessent’s claims, arguing that rising costs for fuel, groceries, and household expenses were straining families despite administration promises. Ranking Member Richard E. Neal accused the administration of failing to address economic struggles, while Representative Judy Chu pointed to sharp increases in gas prices, particularly burdening lower-income households. Bessent countered by asserting that real wages had risen monthly since Trump took office—except April—and that inflation pressures tied to energy markets, including the Iran conflict, were temporary. The Treasury Secretary also defended the administration’s trade policies, rejecting Democratic criticism that tariffs contributed to higher prices. He emphasized improvements in economic fundamentals, including manufacturing investment, job creation, and private-sector growth, stating, ‘The economy is very strong. We are creating jobs for Americans.’ Democrats pressed Bessent on these claims, accusing the administration of distorting economic facts, though he declined to comment further due to ongoing litigation and Justice Department guidance. Internationally, Bessent addressed digital services taxes imposed by foreign governments, stating the administration was ‘pushing back’ to prevent foreign entities from targeting US companies. The hearing underscored deep partisan divisions over the state of the US economy, with Republicans praising Trump’s policies and Democrats warning of growing financial hardship for households. The exchange reflected broader tensions ahead of budget negotiations and the 2024 election cycle.