***Breaking News: Americans Expected to See Price Drops in Coming Weeks***
The United States Secretary of the Treasury, Scott Bessent, has stated that consumers should expect to see some prices of goods decrease in the next few weeks.
In an interview on the NBC show “Meet the Press” on Sunday, November 23, Bessent mentioned that the government is working on reducing prices by addressing issues related to illegal immigration, lowering interest rates, and controlling inflation.
President Trump announced on November 14 that tariffs on certain imported food and groceries would be temporarily suspended due to progress in trade negotiations.
Bessent explained, “In March 2024, I wrote an article discussing the three factors that were affecting Americans’ lives: immigration, interest rates, and inflation. President Trump closed the borders, and the massive influx of immigrants has disappeared, which previously drove up housing prices and suppressed wages.”
He added, “Interest rates have dropped, and now we are starting to see a decrease in prices. Prices have become more favorable. Home sales in October were very strong.” Bessent continued, “Energy prices – gasoline prices have dropped. We are seeing – and we also believe that healthcare prices will also decrease: we will see relevant announcements next week.”
“As Thanksgiving approaches this week, it will be the year with the lowest Thanksgiving dinner prices in the past four years. Turkey prices have decreased by 16%,” he further commented.
The interviewer, Kristen Welker, questioned whether the tariffs imposed by Trump to facilitate trade negotiations led to price increases.
Bessent responded that the White House has slowed down the rising pace of inflation left by the previous administration and is working to lower inflation.
Regarding inflation data, Welker pressed Bessent further.
“I would like to ask about the tariffs issue because there was an important announcement regarding tariffs. Since your last appearance on the show, the government announced the cancellation of tariffs on over two hundred food items. You recently mentioned that you believe tariffs are beneficial to consumers. If tariffs are beneficial to consumers, why is the government canceling them?” Welker inquired.
Bessent replied, “First, if you look at the data, you will find that the prices of imported goods have actually remained stable. The rise in inflation is due to the increase in prices in the service industry, so this is unrelated to tariffs. The inflation rates for many foods have decreased because the U.S. Trade Representative has been working to reach trade agreements. These trade agreements have been brewing for six to eight months, notably involving many Latin American and Central American countries, which happen to be the sources of these foods you mentioned.”
Welker continued to question, “Banana prices have risen by nearly 7%, coffee prices have risen by nearly 19%. By canceling tariffs, aren’t you admitting that tariffs did indeed drive up consumer prices?”
Bessent counter-questioned, “Welker, how much does your arm weigh?”
“I don’t know,” Welker replied with a laugh.
Bessent then said, “Exactly, but you know your own weight; you weigh yourself every morning.”
The Treasury Secretary explained, “Inflation is a comprehensive indicator, and we consider all factors. We are working to reduce the factors we can control, as I mentioned earlier, and we are making efforts. Now that energy prices have dropped, all cost-increasing factors can be traced back to this, so I believe other prices will follow suit in decreasing.”
Welker inquired about when prices would start to decrease.
“Some prices will drop in a few weeks, while others may take a few months to decrease,” Bessent responded.
Kevin Hassett, the Chairman of the White House Council of Economic Advisers, also warned last week that although there has been some improvement in inflation over the past few years, it may not be fully under control yet. Coupled with the fact that wage growth has not kept pace with price increases, causing a decline in Americans’ real incomes, citizens still face higher living costs.