Bessent Defends Trump Economy as Democrats Cite $4,200 in Added Costs Per Family

Treasury Secretary Scott Bessent faced a barrage of criticism from Democratic lawmakers Tuesday during a House Financial Services Committee hearing that was disrupted by protests, as members pressed him on record-high gas prices, persistent inflation, and the economic fallout from the ongoing war with Iran.

The hearing unfolded on the same day the Joint Economic Committee's Democratic minority released updated data claiming American families have had to spend an additional $4,200 on everyday essentials since President Trump took office.

National gas prices averaged $4.26 per gallon, according to WMUR, nearly 20 cents lower than a month ago. In New Hampshire, the average stood at $4.34. Democrats on the Ways and Means Committee said the price of a tank of gas has risen more than 50% and that skyrocketing energy prices now account for 40% of rising costs overall.

The American people are suffering. You know better. ... You say that Trump's economic agenda is a great comeback, and that makes me question not only your integrity, but if you're operating in the same reality.— Rep. Ayanna Pressley, D-Mass.

Bessent pushed back, arguing the administration had engineered an economic turnaround and that inflation would prove temporary.

Again, except for inflation, which I believe will be a short-term blip, the economic data is very strong. The jobs data has been very strong.— Scott Bessent, Treasury Secretary

He also framed the Iran conflict in economic terms, telling the committee: "The strength of our economy has allowed the United States to wage the greatest economic isolation campaign in the history of the world against the Islamic Republic of Iran," according to Spectrum Local News.

Senator Maggie Hassan, Ranking Member of the Joint Economic Committee, used the occasion to confront Bessent directly over conditions in her home state.

Let me be clear, the average Granite Stater has paid $3,000 more since Donald Trump took office for basic goods and services. Meanwhile, the country lost 100,000 manufacturing jobs in 2025. So, do you tell the president this information or not?— Sen. Maggie Hassan, D-N.H., Ranking Member, Joint Economic Committee

The White House responded to the hearing with a statement saying that as the threat in Iran is neutralized, Americans will "once again see cooling inflation, gas prices at multi-year lows and accelerated economic growth," according to WMUR.

Democrats on the Ways and Means Committee catalogued a series of specific figures they said contradicted earlier promises Bessent made during testimony last year: that take-home pay would rise, that food, energy, and shelter costs would fall, and that economic growth would hit 5.4% in the fourth quarter. According to the committee, actual growth came in at half a percentage point. The committee also said tariffs have cost families more than $1,700 over the last year, and that the Iran war has added an estimated $750 per household on top of that.

The hearing also surfaced questions about the bond market. The 10-year Treasury yield has stretched past the 5% mark, raising borrowing costs for mortgages and other loans, according to Spectrum Local News. Federal Reserve Chair Kevin Warsh was expected to raise short-term interest rates Wednesday — what would be the first rate hike in three years — in an effort to bring inflation below the 2% target, a move that would put the Fed at odds with Trump, who has called for lower rates.

When Rep. Emanuel Cleaver, D-Mo., questioned Bessent about Trump's pledge to give each American $5,000 if Republicans win the midterm elections — and the deficit implications of such a payment — Bessent declined to express reservations.

Do you have any apprehensions about a $1.8 trillion deficit that would be impacted even more negatively if every American received $5,000 from the federal government?— Rep. Emanuel Cleaver, D-Mo.

I think putting more money in Americans' pockets should be an objective for everyone.— Scott Bessent, Treasury Secretary

Democrats also cited a consumer sentiment index they said has fallen to a record low, and a personal savings rate that has dropped to 2.6% — cut in half in a year, according to the Ways and Means Committee. A survey cited by the committee found 77% of Americans say Trump policies have increased the cost of living, and more than half say it is worse than they can remember.

Hassan said she will continue pushing the administration to reverse course on tariffs, the Iran war, and what she called other harmful actions driving up costs in all 50 states. The JEC minority released state-by-state and congressional district-level fact sheets alongside Tuesday's national figures.

Why it matters — With the Fed poised to raise rates for the first time in three years and household budgets already strained by tariffs and war-driven energy costs, Tuesday's hearing laid bare the widening political and economic fault lines that will shape the midterm elections.

Sources differ on Overall state of the U.S. economy: Economic data is very strong; inflation is a short-term blip; the administration has achieved an impressive turnaround. (wmur.com / spectrumlocalnews.com (Bessent)) vs Families have paid $4,200+ more in costs; manufacturing jobs lost; growth came in at 0.5% vs. projected 5.4%; consumer sentiment at record low. (jec.senate.gov / democrats-waysandmeans.house.gov (Democratic lawmakers))

Sources differ on Inflation outlook: Inflation is a 'short-term blip'; cooling inflation and lower gas prices expected as Iran threat is neutralized. (wmur.com (Bessent / White House)) vs Inflation rate last month wiped out all wage growth; prices rising faster than in years. (democrats-waysandmeans.house.gov (Democratic lawmakers))

Reported by nytimes.com, qz.com, jec.senate.gov, wmur.com, democrats-waysandmeans.house.gov, pennsylvaniaindependent.com, foxnews.com, spectrumlocalnews.com