Bessent Sees No Tariff Inflation as Navarro Presses Fed to Cut Rates

Treasury Secretary Scott Bessent said the public debate over President Donald Trump’s tariff policy has been distorted by what he called “Tariff Derangement Syndrome,” arguing that official data show no sign of inflation stemming from the levies imposed earlier this year. “We have seen no pass-through of tariffs—it’s just not in the data,” Bessent told reporters on 6 July, dismissing claims that the trade measures are fueling price pressures. Echoing the administration’s stance, White House trade adviser Peter Navarro used a CNBC appearance on 7 July to call on the Federal Reserve’s board to counter Chair Jerome Powell’s resistance to lower interest rates. Navarro contended that Powell is blocking the full implementation of “Trumponomics” and insisted that, in the absence of tariff-driven inflation, the Fed has room to ease policy. The comments add to mounting political pressure on the central bank ahead of its next rate-setting meeting.