Sat Feb 07 10:10:00 UTC 2026: # Waters and Bessent Clash Over Inflation and Affordability, Echoing Past Disputes

The Story:
A heated exchange erupted between Representative Maxine Waters and Treasury Secretary Scott Bessent during a House Financial Services Committee hearing, reminiscent of Waters’s previous confrontations with Trump administration officials. The debate centered on the impact of tariffs on inflation and housing affordability, key issues for American voters in the upcoming midterms. Waters accused Bessent of talking over her and challenged his assertions about the inflationary effects of tariffs and the causes of the housing crisis.

Key Points:

  • The exchange mirrored a similar confrontation between Waters and former Treasury Secretary Steven Mnuchin in 2017, where her phrase “reclaiming my time” went viral.
  • Waters argued that tariffs imposed by the Trump administration have increased prices on goods like coffee, bananas, lumber, and steel, contributing to the housing affordability crisis.
  • Bessent countered that historically, major tariff increases don’t cause broad-based inflation, citing a San Francisco Federal Reserve report. He also blamed the housing crisis on unfettered immigration.
  • The article highlights the complexities of the inflation debate, noting that while tariffs can lead to one-time price increases, they may not fuel continuous price gains in the long term.
  • The article points out that Lumber prices fell because of tariffs.
  • The heated exchange underscores the divide between low consumer sentiment and a growing U.S. economy.

Key Takeaways:

  • The clash highlights the ongoing political polarization surrounding economic policy, particularly regarding tariffs and immigration.
  • The debate reveals the nuances of economic analysis, where short-term and long-term effects of policies can differ significantly.
  • Consumer perception of affordability can be influenced by factors beyond traditional inflation metrics.
  • While lumber prices have fallen as a result of excess supply caused by the tariffs, Congress will need to act to incentivize homebuilding and ensure prices remain stable.

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