Scott Bessent says US inflation jump will be ‘short-term blip’

{"text":[[{"start":6.7,"text":"US Treasury secretary Scott Bessent has insisted the surge in inflation triggered by the Iran war will be a “short-term blip”, as Donald Trump’s administration attempts to contain mounting frustrations over the conflict."}],[{"start":21.95,"text":"Bessent told a congressional committee hearing on Wednesday that the burst of higher prices would be transitory as he defended the president’s handling of the economy."}],[{"start":31.1,"text":"“Except for inflation, which is, I believe, going to be a short-term blip, the economic data is very strong,” he said in response to questioning by members of the Senate finance committee. "}],[{"start":41.55,"text":"“I think we have all the makings for a very strong economy. I think that we have temporary elevated prices that will come back down.”"}],[{"start":null,"text":"

"}],[{"start":null,"text":""}],[{"start":50.949999999999996,"text":"The remarks come as Trump contends with growing frustration over the domestic implications of the war. Tehran’s closure of the Strait of Hormuz has pushed up petrol and diesel prices more than 40 per cent."}],[{"start":63.64999999999999,"text":"As of Wednesday, American consumers had paid an additional $53bn in petrol and diesel costs since the war began, or more than $400 per household, according to Brown University. "}],[{"start":76.64999999999999,"text":"Consumer price inflation jumped to a three-year high of 3.8 per cent in April as higher energy prices spilled into other parts of the economy."}],[{"start":85.39999999999999,"text":"Americans have begun to cut back on spending as a result, with middle-income households “squeezing more life out of every dollar before deciding to spend it”, according to a report from the Federal Reserve on Wednesday. "}],[{"start":97.74999999999999,"text":"“Overall, there were reports of increased credit card usage, fewer retail visits, and stronger demand for necessities,” the Fed said in its Beige Book report on current economic conditions. "}],[{"start":null,"text":""}],[{"start":109.89999999999999,"text":"The squeeze on consumers has knocked the president’s popularity and the public’s confidence in his ability to steer the world’s biggest economy. "}],[{"start":118.99999999999999,"text":"A Harvard CAPS Harris poll found 39 per cent of Americans approved of Trump’s handling of the economy. A Marquette Law School survey put the figure at 30 per cent, with 22 per cent approving of his handling of the cost of living specifically. "}],[{"start":134.14999999999998,"text":"Bessent on Wednesday repeatedly pointed to high inflation levels under the administration of Joe Biden, when prices soared in the wake of Russia’s full-scale invasion of Ukraine and the post-pandemic economic recovery."}],[{"start":147.39999999999998,"text":"He insisted that a rise in fertiliser costs — which have soared since the outbreak of the Middle East conflict — began during Biden’s presidency and said grocery price inflation had moderated under Trump."}],[{"start":159.64999999999998,"text":"“Since President Trump took office, food prices — or as many people like to call them, groceries — food at home in the statistical data, is up 2.5 per cent,” he said. “Americans are paying 2.5 per cent more for groceries since President Trump took office, which is half the annual amount under the Biden administration.”"}],[{"start":178.79999999999998,"text":"While food price inflation is below the highs reached under the last administration, it rose sharply in the latest official figures. The cost of buying food at the grocery store was up 2.9 per cent in April, its highest level since 2023. Fruit and vegetables added 6.1 per cent. "}],[{"start":196.89999999999998,"text":"Trump has faced criticism over recent remarks suggesting the inflationary fallout was not motivating him to end the war “even a little bit”. "}],[{"start":205.74999999999997,"text":"“I don’t think about Americans’ financial situation,” he said last month. “I don’t think about anybody. I think about one thing — we cannot let Iran have a nuclear weapon. That’s all.”"}],[{"start":217.24999999999997,"text":"Bessent on Wednesday said the president’s remarks had been “taken out of context”."}],[{"start":222.09999999999997,"text":"“We understand that these are challenging times for the American people, that we will get over this and that at present, the average household has paid about $200 more in gasoline,” he said. “We think about this every day.”"}],[{"start":242.39999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780552418_5016.mp3"}