Asked this Wednesday, 4th, about the effects of tariffs on other countries to support American industry, the Secretary of the Treasury of the United States, Scott Bessent, replied that the administration used them to reduce those applied to North American products, as in the cases of Brazil and Colombia. The responses came in testimony before the House of Representatives Financial Services Committee, in which Bessent declined to say whether an earlier statement of his that the fees were inflationary was correct.
Also evasive, when questioned, Bessent did not respond about the possibility of removing members of the Federal Reserve (Fed, the North American central bank) due to disagreements with the North American president being valid. In turn, he indicated that he believes that President Donald Trump has the right to have an opinion on monetary policy. According to him, the Fed’s independence was affected when it interfered in other areas and lost confidence when inflation got out of control under the previous government.
Still on the authority, he said that Donald Trump “made it clear” that central bank digital currencies (CDBC) go against the administration’s plans, and that he expects this to be the same position as the monetary authority. According to the secretary, there is no search for financial deregulation at all costs. He also defended the continuity of policies that strengthen the dollar.
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Regarding Venezuela, once again evasive, the secretary did not point out which legal devices Washington has to command sectors of the country, especially hydrocarbons. In turn, he pointed out: “we will have external auditors to monitor the flow of oil funds to Venezuela.” Bessent also said that Defense priorities are the same as those of the economy, “starting with critical minerals”.
Regarding housing prices, he stated that mortgages reached a three-month low in January, heading towards a reduction in costs.
Bessent has reinforced a number of times that illegal immigrants drive rising rental prices, and that the administration’s recent actions on the issue tend to reduce demand. Regarding inflation and activity, Bessent stated: “we are on track for 3% growth, the economy is doing very well”.
