(WASHINGTON) — As the cost of many basic goods, including groceries, continues to rise, Treasury Secretary Scott Bessent said in an interview with ABC News Senior White House Correspondent Selina Wang, he understands the hardships facing millions of people, but argued that the Biden administration is responsible for the rising costs.
“Look, Americans should be worried about affordability. The Biden administration destroyed affordability,” he told ABC News on Wednesday, contending inflation under the Biden administration was the worst in 49 years.
Bessent did not provide more details about how the previous administration was responsible for rising costs, but claimed that the Trump administration was “getting inflation under control.”
Yet prices for goods are seeing mixed results, according to Consumer Price Index data.
For example, gas prices have decreased over the last year, while coffee prices have risen by nearly 20% and ground beef prices have risen by 15.5% during the same period, CPI data showed.
When pressed on those statistics, Bessent said people need to see costs in a broader context.
“When you step on the scale, you don’t look at the composite number of how much you weigh and say, ‘Well, my arm weighs this. My head weighs this.’ So I believe that we are quickly going to meet the [Federal Reserve’s] target of 2% inflation,” he said.
Bessent on the Fed
When it came to the Fed, Bessent stressed that President Donald Trump “has great reverence” for the body and respects the central bank but added, “independence does not mean no accountability.”
“I think it’s very important for the Fed to be both independent but accountable,” he said.
Earlier this month, the Justice Department announced a probe into Fed Chair Jerome Powell, alleging he misled Congress about costs over the renovation of Federal Reserve buildings.
Powell said in a statement that the probe is part of the administration’s push to lower interest rates.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” he said in a video message on Jan. 11.
A bipartisan group of senators and former Fed chairs slammed the Justice Department for the probe.
Bessent allegedly warned Trump that the investigation “made a mess” and could be bad for financial markets, according to a report by Axios. When asked about those alleged concerns, the treasury secretary told ABC News he has “repeatedly called for the Fed to do its own investigation.”
Trump accounts
Bessent was slated to appear with the president on Wednesday to discuss his “Trump Accounts” plan for families.
Under Trump’s signature tax and spending legislation, starting this July, the federal government will deposit $1,000 for every baby born between 2025 and 2028. Families can contribute up to $5,000 annually. Employers can contribute up to $2,500 per year per employee.
Michael Dell and his wife announced late last year they are donating $6.25 billion to seed savings accounts for up to 25 million American children — depositing $250 for every child age 10 and under, who lives in a zip code where the median income is below $150,000.
Bessent told ABC News that 600,000 families have already gone online to open accounts. He said he expects states to make contributions, in addition to new contributions from companies and philanthropists.
“So there will be government contribution. We believe that many states will make contributions,” he said.
“Employers are going to contribute, philanthropists are going to contribute, companies are going to contribute,” Bessent added.
JP Morgan and Bank of America announced Wednesday that they will match employees’ “Trump Accounts” by $1,000.
Venezuela
Bessent said “things are moving very quickly” when it comes to oil companies committing to invest in rebuilding Venezuela’s oil sector.
He didn’t provide the dollar amount that’s been committed, but said they’re seeing “great demand.”
Shortly after the U.S. removed the Venezuelan president from power on Jan. 3, Trump said that he expects at least $100 billion in investments from major companies.
But during a roundtable Trump held earlier this month with oil executives, several CEOs expressed reservations.
-ABC News’ Taylor Dunn contributed to this report.
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