Bessent: Inflation Is a Short-Term Shock, Employment Remains Solid

\r\r\r[Financial News, New York = Lee Byung-chul]U.S. Treasury Secretary Scott Bessent said the recent surge in prices triggered by the Iran War would likely prove temporary, as he moved to ease economic concerns surrounding the Trump administration. With energy prices jumping after the Strait of Hormuz was blocked and consumer frustration rising, he appeared to be trying to calm public sentiment as confidence in President Donald Trump's economic management wavered.
Appearing before the Senate Finance Committee on the 3rd local time, Bessent said, "I believe inflation will be a short-term blip," adding, "The rest of the economic indicators are very strong, and the labor market is also solid." He went on to say, "The rise in prices will be temporary," strongly defending President Donald Trump's economic approach.
The remarks came as concerns grew over the impact of a prolonged war with Iran on the U.S. economy.
Following Iran's blockade of the Strait of Hormuz, gasoline and diesel prices in the USA have jumped by more than 50%. As higher energy costs spread through the broader economy, consumer inflation in April reached 3.8%, the highest level in three years.
The growing burden of living costs is also adding to President Donald Trump's political pressure. According to the Harvard CAPS / Harris Poll released on the 3rd, only 39% of Americans gave his economic management a positive rating. In a Marquette University Law School survey, approval of his handling of the economy came in at just 30%, while his rating on addressing living costs was even lower at 22%.
In particular, President Donald Trump's recent remarks have fueled further controversy.
Last month, when asked whether the inflation shock was affecting his decision on ending the war, he drew criticism by saying, "I don't think about Americans' economic situation. All I think about is making sure Iran does not get nuclear weapons."
Bessent moved quickly to clarify the comments. He said, "President Trump's remarks were taken out of context," and added, "He understands very well that this is a difficult time for Americans."
He continued, "The average household is now paying about $200 more for gasoline, and we think about that every day," adding, "In the end, we will get through this."
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pride@fnnews.com Lee Byung-chul Reporter