Trump Treasury Chief Claps Back at Brennan: ‘You Said There’d Be Big Inflation – There Hasn’t Been’

BRENNAN But when you ░░░░░░░░ last here in March ░░░░░░░░ were trying to gauge ░░░░░░░░ the impact of the ░░░░░░░░ with China and with ░░░░░░░░ tariffs on the rest ░░░░░░░░ the world would do ░░░░░░░░ American consumers here at ░░░░░░░░ At that time you ░░░░░░░░ us you were going ░░░░░░░░ appoint an affordability czar ░░░░░░░░ council to figure out ░░░░░░░░ you said or eight ░░░░░░░░ where there will be ░░░░░░░░ pain for working class ░░░░░░░░ Where are you anticipating ░░░░░░░░ increases BESSENT Well thus ░░░░░░░░ we wanted to make ░░░░░░░░ that there aren t ░░░░░░░░ increases Margaret And thus ░░░░░░░░ there have been no ░░░░░░░░ increases Everything has been ░░░░░░░░ The inflation numbers are ░░░░░░░░ dropping We saw the ░░░░░░░░ drop of inflation in ░░░░░░░░ years The inflation numbers ░░░░░░░░ week they were very ░░░░░░░░ consumer We ve seen ░░░░░░░░ Right But you listen ░░░░░░░░ earnings calls just like ░░░░░░░░ do You know what ░░░░░░░░ s saying what Best ░░░░░░░░ s saying and what ░░░░░░░░ are saying of what ░░░░░░░░ coming BESSENT But Margaret ░░░░░░░░ also know what Home ░░░░░░░░ and Amazon are saying ░░░░░░░░ know what the South ░░░░░░░░ Morning Post wrote within ░░░░░░░░ past 24 hours that ░░░░░░░░ percent 65 percent of ░░░░░░░░ tariffs will likely be ░░░░░░░░ by the Chinese producers ░░░░░░░░ So are there five ░░░░░░░░ eight areas that you ░░░░░░░░ identified as you said ░░░░░░░░ in March where American ░░░░░░░░ will be able to ░░░░░░░░ lower prices or should ░░░░░░░░ warned of higher prices ░░░░░░░░ Well a lot of ░░░░░░░░ s already working its ░░░░░░░░ through the system So ░░░░░░░░ ve seen a substantial ░░░░░░░░ in gasoline and energy ░░░░░░░░ so that s down ░░░░░░░░ percent year over year ░░░░░░░░ ve seen food prices ░░░░░░░░ down you know these ░░░░░░░░ egg prices Through the ░░░░░░░░ work of President Trump ░░░░░░░░ Secretary Rollins egg prices ░░░░░░░░ collapsed So we re ░░░░░░░░ more and more And ░░░░░░░░ we want to do ░░░░░░░░ even that out across ░░░░░░░░ all sections of the ░░░░░░░░ So inflation has been ░░░░░░░░ tame Consumer earnings were ░░░░░░░░ 0 8 percent last ░░░░░░░░ which is a gigantic ░░░░░░░░ for one month So ░░░░░░░░ earnings minus low inflation ░░░░░░░░ great for the American ░░░░░░░░ and that s what ░░░░░░░░ re seeing BRENNAN But ░░░░░░░░ know because when you ░░░░░░░░ with the Chinese earlier ░░░░░░░░ month and you went ░░░░░░░░ from the 145 percent ░░░░░░░░ down to about it ░░░░░░░░ like 30 percent 30 ░░░░░░░░ s not nothing that ░░░░░░░░ on goods coming in ░░░░░░░░ Retailers are warning of ░░░░░░░░ hikes When you go ░░░░░░░░ to school shopping things ░░░░░░░░ going to cost more ░░░░░░░░ But Margaret some are ░░░░░░░░ some aren t Home ░░░░░░░░ and Amazon said they ░░░░░░░░ not And BRENNAN Home ░░░░░░░░ and Amazon aren t ░░░░░░░░ you go for your ░░░░░░░░ to school shopping when ░░░░░░░░ buy your jeans when ░░░░░░░░ buy your crayons and ░░░░░░░░ buy all those things ░░░░░░░░ parents BESSENT I don ░░░░░░░░ know about you but ░░░░░░░░ do it online at ░░░░░░░░ This isn t an ░░░░░░░░ for Amazon And guess ░░░░░░░░ most of the Halloween ░░░░░░░░ in America get bought ░░░░░░░░ Home Depot So that ░░░░░░░░ just not right There ░░░░░░░░ a wide aperture here ░░░░░░░░ companies are doing different ░░░░░░░░ They are making decisions ░░░░░░░░ on their customers what ░░░░░░░░ think they re able ░░░░░░░░ pass along to their ░░░░░░░░ what they want to ░░░░░░░░ to keep their customers ░░░░░░░░ know I was in ░░░░░░░░ investment business for 35 ░░░░░░░░ Margaret and I will ░░░░░░░░ you earnings calls they ░░░░░░░░ to give the worst ░░░░░░░░ scenario because if it ░░░░░░░░ they haven t and ░░░░░░░░ bad happens then they ░░░░░░░░ be sued BRENNAN It ░░░░░░░░ not always the worst ░░░░░░░░ It s the most ░░░░░░░░ case as well BESSENT ░░░░░░░░ no no no no ░░░░░░░░ no they have to ░░░░░░░░ the worst case BRENNAN ░░░░░░░░ Walmart there was just ░░░░░░░░ piece published with the ░░░░░░░░ strategist Karl Rove I ░░░░░░░░ not asking about politics ░░░░░░░░ he is a political ░░░░░░░░ but he went in ░░░░░░░░ the math here And ░░░░░░░░ points out that Walmart ░░░░░░░░ a profit margin of ░░░░░░░░ than 3 percent He ░░░░░░░░ If it does what ░░░░░░░░ Trump says eat the ░░░░░░░░ it can t break ░░░░░░░░ It can t absorb ░░░░░░░░ cost of an imported ░░░░░░░░ of kids jeans with ░░░░░░░░ 46 percent tariff on ░░░░░░░░ a 37 percent tariff ░░░░░░░░ Bangladesh or 32 percent ░░░░░░░░ on sneakers from Indonesia ░░░░░░░░ companies are in the ░░░░░░░░ pickle So should companies ░░░░░░░░ back on the amount ░░░░░░░░ goods they have on ░░░░░░░░ shelves or just on ░░░░░░░░ profitability BESSENT That that ░░░░░░░░ a decision company by ░░░░░░░░ Margaret And I had ░░░░░░░░ long discussion with Doug ░░░░░░░░ the CEO of Walmart ░░░░░░░░ they re going to ░░░░░░░░ what s right for ░░░░░░░░ BRENNAN But for consumers ░░░░░░░░ reality is there will ░░░░░░░░ be less inventory or ░░░░░░░░ at higher prices or ░░░░░░░░ BESSENT Margaret when we ░░░░░░░░ here in March you ░░░░░░░░ there was going to ░░░░░░░░ big inflation There hasn ░░░░░░░░ been any inflation Actually ░░░░░░░░ inflation numbers are the ░░░░░░░░ in four years So ░░░░░░░░ Don t We stop ░░░░░░░░ to say this could ░░░░░░░░ and wait and see ░░░░░░░░ does happen BRENNAN Just ░░░░░░░░ to gauge for people ░░░░░░░░ ahead here E tries ░░░░░░░░ look a