"Bessent: Deregulation, Lower Rates to Combat Inflation, Tariffs Boost US Manufacturing"
1min read In a recent interview, U.S. Treasury Secretary Scott Bessent underscored the administration's commitment to combating inflation and making life more affordable for Americans. He highlighted the administration's economic priorities, including efforts to lower interest rates, which have declined significantly since the election and inauguration.
Bessent attributed the decline in mortgage rates to upcoming bank deregulation and emphasized that the administration aims to lower interest rates to help Americans struggling with high borrowing costs, particularly those in the bottom 50% of income earners. He noted that lower interest rates would not only benefit homeowners but also help ease credit card and auto loan costs, which disproportionately affect low-income Americans.
While inflation is easing, Bessent acknowledged that costs for essential goods, housing, and insurance remain high, largely due to excessive regulations imposed by the previous administration. He differentiated between affordability and inflation, stating that affordability is a more pressing issue that needs to be addressed.
Bessent stressed that deregulation is key to addressing costs across sectors like insurance and housing. He estimated that administrative burdens amount to several thousand dollars per year, and if these can be cut, it would be an excellent start on improving affordability.
The administration's tariff policies were another key focus of Bessent's remarks. New tariffs—10% on all Chinese imports and 25% on imports from Mexico and Canada—went into effect this week, sparking market reactions. While some analysts fear potential price hikes, Bessent expressed confidence that Chinese manufacturers will absorb the tariffs rather than passing costs onto American consumers.
Bessent pointed to recent moves by companies like honda, which announced plans to shift manufacturing to Indiana, as evidence that tariffs are successfully encouraging businesses to bring production back to the US. He stressed that the administration's goal is to promote a more balanced and fair trade environment.
