Democratic lawmakers launched a fierce attack, but Bessant admitted his mistake: "The claim that tariffs drive up inflation" is incorrect.

U.S. Treasury Secretary Scott Bessent admitted Wednesday under questioning from several Democratic lawmakers that he and his Key Square Investments firm were wrong to tell partners in January 2024—before Trump wins re-election—that tariffs were inflationary. Bessent, questioned by lawmakers about the document during a often heated hearing before the House Financial Services Committee, said he wanted to correct the record. “If I was wrong before, I’m willing to correct it. My statement that tariffs could cause inflation was indeed wrong,” Bessent, a Trump appointee, told lawmakers.