Trump Treasury Chief Claps Back at Brennan: ‘YOU Said There’d Be Big Inflation – There Hasn’t Been’

Trump Treasure Secretary Scott Bessent clapped back at CBS anchor Margaret Brennan on Sunday over inflation, as they each brought up comments made by the other in a previous Sunday morning battle.

Bessent appeared on the latest Face the Nation from CBS News on Sunday to talk about the China, the economy, and how tariffs being imposed by President Donald Trump affect those issues.

The discussion turned to inflation when Brennan brought up Brennan’s prior comments from his March appearance on the show on the subject of prices, during which he said they’d be appointing an “affordability czar” at Treasury.

“What’s an affordability czar?” Brennan asked in that interview.

“Someone who picks the five or eight areas where this administration can make a big difference for working-class Americans,” Bessent answered at the time.

On Sunday, Brennan referenced those past comments to ask, “Where are you anticipating price increases?”

Bessent noted that he did not say in his past comment that an affordability czar would be “anticipating price increases,” but instead would be picking areas where they can make a difference in lowering prices.

“We wanted to make sure that there aren’t price increases, Margaret. And, thus far, there have been no price increases,” he said. “Everything has been alarmist, the inflation numbers are actually dropping. We saw the first drop of inflation in four years. The inflation numbers last week, they were very pro-consumer.”

Brennan cited earnings calls of two companies in the world that apparently foreshadowed price increases, and Bessent replied naming two companies who said the opposite.

Brennan then suggested again that in March Bessent had promised to identify “price increases,” which was not what he said, and asked, “Are there five or eight areas that you have identified, as you said back in March, where American consumers will be able to have lower prices, or should be warned of higher prices?”

“Well, a lot of it’s already working its way through the system. So we’ve seen a substantial decrease in gasoline and energy prices. So that’s down 20 percent year over year,” Bessent replied. “We’ve seen the food prices go down, these notorious egg prices. Through the good work of President Trump and Secretary Rollins, egg prices have collapsed. So we’re seeing more and more.”

Brennan insisted that retailers are predicting price increases, Bessent pointed out that not all companies are saying that, and then Brennan suggested that people don’t shop for clothes from the world’s largest retailer, Amazon.

After several more such exchanges, Brennan summarized her opinion by saying, “for consumers, the reality is, there will either be less inventory or things at higher prices, or both.”

Bessent then referred back to Brennan’s past comments, as she had referred back to his.

“Margaret, when we were here in March, you said there was going to be big inflation. There hasn’t been any inflation. Actually, the inflation numbers are the best in four years,” he said. “So why don’t we stop trying to say this could happen and wait and see what does happen?”

“Just trying to gauge for people planning ahead here,” the host objected before moving on.

BRENNAN: When you were last here in March, we were trying to gauge what the impact of the standoff with China and with the tariffs on the rest of the world would do for American consumers here at home.

At that time, you told us you were going to appoint an affordability czar and council to figure out five – you said, or eight areas where there will be some pain for working-class Americans. Where are you anticipating price increases?

BESSENT: Well, thus far – we wanted to make sure that there aren’t price increases, Margaret. And, thus far, there have been no price increases. Everything has been alarmist, the inflation numbers are actually dropping.

We saw the first drop of inflation in four years. The inflation numbers last week, they were very pro-consumer. We’ve seen…

BRENNAN: Right. But you listen to earnings calls just like we do. You know what Walmart’s saying, what Best Buy’s saying and what Target are saying of what’s coming.

BESSENT: But, Margaret, I also know what Home Depot and Amazon are saying. I know what the South China Morning Post wrote within the past 24 hours, that 65 percent, 65 percent – the – of the tariffs will likely be eaten by the Chinese producers.

BRENNAN: So, are there five or eight areas that you have identified, as you said back in March, where American consumers will be able to have lower prices, or should be warned of higher prices?

BESSENT: Well, a lot of it’s already working its way through the system. So we’ve seen a substantial decrease in gasoline and energy prices. So that’s down 20 percent year over year.

We’ve seen the food prices go down, these notorious egg prices. Through the good work of President Trump and Secretary Rollins, egg prices have collapsed. So we’re seeing more and more. And what we want to do, the – is even that out across the – all sections of the economy.

So, inflation has been very tame. Consumer earnings were up 0.8 percent last month, which is a gigantic increase for one month. So, real earnings minus low inflation is great for the American people, and that’s what we’re seeing.

BRENNAN: But you know, because when you met with the Chinese earlier this month, and you went down from the 145 percent tariff down to about – it’s like 30 percent; 30 percent’s not nothing, that tax on goods coming in here.

Retailers are warning of price hikes.

BESSENT: Well, but – but – but – but…

BRENNAN: When you go back-to-school shopping, things are going to cost more.

BESSENT: But, Margaret, some are and some aren’t. Home Depot and Amazon said they’re not. And I…

BRENNAN: Home Depot and Amazon aren’t where you go for your back- to-school shopping, when you buy your jeans, when you buy your crayons, and you buy all those things that parents…

(CROSSTALK)

BESSENT: I don’t know about you, but I do it online at Amazon.

This isn’t an advertisement for Amazon. And guess where most of the Halloween costumes in America get bought? At Home Depot. So that’s just not right. There’s a wide aperture here. Different companies are doing different things. They are making decisions based on their customers, what they think they’re able to pass along to their customers, what they want to do to keep their customers.

And I was in the investment business for 35 years, Margaret, and I will tell you earnings calls, they have to give the worst-case scenario, because if it – if they haven’t and something bad happens, then they’ll be sued.

BRENNAN: It’s not always the worst case. It’s the most probable case as well.

BESSENT: No, no, no, no, no, no, no, they have to give the worst case.

BRENNAN: So, Walmart – there was just a piece published with the conservative strategist Karl Rove. I’m not asking about politics, because he is a political strategist, but he went in on the math here.

And he points out that Walmart has a profit margin of less than 3 percent. He says: “If it does what Mr. Trump says, eat the tariffs, it can’t break even. It can’t absorb the cost of an imported pair of kids jeans with a 46 percent tariff on Vietnam, a 37 percent tariff for Bangladesh, or 32 percent tariff on sneakers from Indonesia. Other companies are in the same pickle.”

So should companies cut back on the amount of goods they have on their shelves or just on their profitability?

BESSENT: That – that’s a decision company by – by company, Margaret.

And I had a long discussion with Doug McMillon, the CEO of Walmart, and they’re going to do what’s right for them.

BRENNAN: But, for consumers, the reality is, there will either be less inventory or things at higher prices, or both.

BESSENT: Margaret, when we were here in March, you said there was going to be big inflation. There hasn’t been any inflation. Actually, the inflation numbers are the best in four years. So why don’t we stop trying to say this could happen and wait and see what does happen?

BRENNAN: Just trying to gauge for people planning ahead here.

Watch the clip above via CBS News.