World Economy

Waters Challenges Bessent Over Tariff Impact on Inflation and Rates

Treasury Secretary Scott Bessent faced sharp criticism from Rep. Maxine Waters (D-CA) during House Finance Committee testimony. The lawmaker attributed elevated consumer prices and rising borrowing costs to the administration's tariff policies and geopolitical tensions. Waters questioned Bessent's reliance on faster economic growth as a solution to fiscal concerns, a centerpiece of his recent G20 leadership agenda. Oil markets have reflected mounting pressure, with crude prices climbing above $100 per barrel amid escalating U.S.-Iran tensions. Prediction markets indicate gasoline could reach new yearly highs. The situation has forced Federal Reserve leadership to navigate competing pressures—inflation remains above target while tariff stability and energy costs remain uncertain. Angola's central bank moved counter to global monetary tightening by cutting rates as regional inflation cooled.