Treasury Secretary Scott Bessent and Democrats sparred Thursday over affordability in America and the Federal Reserve during a spicy hearing that was supposed to be a dry update on a financial regulatory panel.
Sen. Elizabeth Warren, Massachusetts Democrat, wanted an assurance that Mr. Trump would not sue his pick for Fed chair, Kevin Warsh, if Mr. Warsh refused to lower interest rates after taking the post.
Mr. Trump, during a satirical Alfalfa Club dinner on Saturday, joked about taking legal action against Mr. Warsh if he doesn’t lower rates.
“That is up to the president,” Mr. Bessent told the Senate Banking Committee before the senator cut him off.
“You can’t say that he won’t be sued if he doesn’t drop interest rates?” Ms. Warren said.
Mr. Bessent went to the Hill to testify about the Financial Stability Oversight Council’s annual report to Congress.
The council is a team of regulators tasked with identifying and responding to risks that could cause wider shocks in the economy.
However, the hearing quickly veered into other topics, such as the “affordability crisis” that Democrats used to win big elections in 2025 and will revisit for the midterms.
Democrats said Americans are still struggling to afford groceries and housing despite Mr. Trump’s pledge to lower costs on day 1.
“You have a lot to answer for,” Ms. Warren said.
She pointed to Bureau of Labor Statistics data that said grocery prices were up 2.4% compared with a year ago.
Mr. Bessent wasn’t having it, saying Mr. Trump has made progress in trying to dig out of a hole dug by the prior administration.
“There is an affordability crisis, and you were front and center in it,” Mr. Bessent said. “He is saying that trying to lay the blame at this administration, rather than the Biden-Warren economy, is a hoax.”
Asked if food prices decreased, Mr. Bessent said that “numerous grocery prices have gone down.”
For instance, the average price for a dozen eggs is down to $3.59 compared with over $6 at the start of 2025, a high number driven in part by avian flu.
Mr. Trump frequently boasts about his efforts to tackle egg prices after his inauguration.
On financial oversight, Mr. Bessent said the administration is looking for vulnerabilities in the economy but is wary of “overregulation” that could stifle economic growth.
He also said the council is using artificial intelligence to identify potential risks.
More broadly, despite a lengthy government shutdown last year, “we have seen extremely strong economic growth,” Mr. Bessent said.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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