>> REMEMBER WHAT MAMA GUMP SAID, STUPID IS AS STUPID DOES.
LET’S NOT BE STUPID.
LET’S DON’T HAVE A TRADE WAR.
>> AND JOINING ME NOW IS
TREASURY SECRETARY SCOTT
BESSENT.
SECRETARY BESSENT, WELCOME BACK
TO "MEET THE PRESS "QWEST.
powered by the makers of NyQuil. >> GOOD TO SEE YOU.
>> IT’S GOOD TO HAVE YOU BACK
AFTER A BIG WEEK.
LET’S TALK ABOUT PRESIDENT
TRUMP’S ANNOUNCEMENT TO HIS
TARIFFS AS I LAID OUT AT THE TOP
OF THE PROGRAM.
THE MARKETS LOST MORE THAN $6
TRILLION IN VALUE.
WAS THIS DISRUPTION ALWAYS PART
OF THE PLAN, MR. SECRETARY?
>> LOOK, THE MARKETS ARE ORGANIC
ANIMALS.
YOU NEVER KNOW WHAT THE
REACTION’S GOING TO BE.
ONE THING THAT I CAN TELL YOU IS
THAT TREASURY SECRETARY, WHAT
I’VE BEEN VERY IMPRESSED WITH IS
THE MARKET INFRASTRUCTURE THAT
WE HAD RECORD VOLUME ON FRIDAY,
AND EVERYTHING IS WORKING VERY
SMOOTHLY SO THE AMERICAN PEOPLE,
THEY CAN BE VERY -- TAKE GREAT
COMFORT IN THAT AND IN TERMS OF
THE MARKET REACTION, LOOK, WE
GET THESE SHORT-TERM MARKET
REACTIONS FROM TIME TO TIME.
THE MARKET CONSISTENTLY
UNDERESTIMATES DONALD TRUMP.
I REMEMBER IN 2016, THE NIGHT
PRESIDENT TRUMP WON, THE MARKET
CRASHED.
THE MARKET CRASHED, AND IT TURN
OUT HE WAS GOING TO BE THE MOST
PRO-BUSINESS PRESIDENT IN OVER A
CENTURY, MAYBE IN THE HISTORY OF
THE COUNTRY, AND WE WENT ON TO
VERY HIGH AFTER INFLATION
RETURNS FOR THE NEXT FOUR YEARS.
>> BUT THIS WAS THE BIGGEST
TWO-DAY CRASH SINCE THE
PANDEMIC.
THE PRESIDENT ON SATURDAY URGING
PEOPLE, QUOTE, TO HANG TOUGH
SAYING IT WON’T BE EASY, AND I
GUESS THE BIG QUESTION ON
PEOPLE’S MINDS, MR. SECRETARY,
HOW DIFFICULT IS IT GOING TO BE
AND HOW LONG ARE AMERICANS GOING
TO HAVE TO HANG TOUGH?
>> WELL, AGAIN, I REJECT THAT
ASSUMPTION.
THERE DOESN’T HAVE TO BE A
RECESSION.
WHO KNOWS HOW THE MARKET IS
GOING TO REACT IN A DAY AND A
WEEK AND WHAT WE WILL HAVE IS
THE LONG-TERM FUNDAMENTALS TO
PROSPERITY THAT I THINK THE
PREVIOUS ADMINISTRATION HAD PUT
US ON A COURSE TOWARD FINANCIAL
CALAMITY.
>> JUST IN TERM OF THE
UNCERTAINTY, I THINK, THAT
PEOPLE ARE FEELING AND SEEING
AND PRESIDENT TRUMP SAYING HE
WANTS PEOPLE TO HANG TOUGH,
ACKNOWLEDGING THERE’S GOING TO
BE WHAT HE HAS DESCRIBED AS A
SHORT PERIOD OF PAIN, CAN YOU
HELP PROVIDE SOME CLARITY FOR
FOLKS?
HOW LONG WILL THIS PERIOD OF
UNCERTAINTY BE?
ARE WE TALKING ABOUT WEEKS?
ARE WE TALKING ABOUT MONTHS?
ARE WE TALKING ABOUT YEARS?
>> AGAIN, THIS IS AN ADJUSTMENT
PROCESS.
WHAT WE SAW WITH PRESIDENT
REAGAN WHEN HE BROUGHT DOWN THE
GREAT INFLATION AND WE GOT PAST
THE CARTER MALAISE THAT THERE
WAS SOME CHOPPINESS AT THAT
TIME, BUT HE HELD THE COURSE,
AND WE’RE GOING TO HOLD THE
COURSE AND THIS HAS BEEN YEARS
IN THE BUILDING.
-- YEARS IN THE MAKING.
THIS UNSUSTAINABLE SYSTEM.
OUR TRADING PARTNERS HAVE TAKEN
ADVANTAGE OF US, WE CAN SEE THAT
THROUGH THE LARGE SURPLUSES.
WE CAN SEE THAT THROUGH THE
LARGE DEFICITS AND THIS IS A
NATIONAL SECURITY PROBLEM WHICH
WE SAW DURING COVID.
WE SAW DURING COVID THAT OPTIMAL
SUPPLY CHAINS ARE NOT RESILIENT,
AND WHAT I CAN SAY IS THE ONLY
GOOD OUTCOME FROM COVID IS IT
WAS A BETA TEST FOR WHAT WOULD
HAPPEN IF OUR SUPPLY CHAINS GOT
BROKEN AND PRESIDENT TRUMP HAS
GIVEN -- HAS DECIDED THAT WE
CANNOT BE AT RISK LIKE THAT FOR
CRUCIAL MEDICINES, FOR
SEMICONDUCTORS AND FOR SHIPPING
AND WE ARE GOING TO MOVE FORWARD
SO THE AMERICAN PEOPLE CAN THAN
THEY ARE GOING TO HAVE A MORE
SECURE FUTURE.
>> AND YET, PRESIDENT TRUMP
PROMISED THAT HE WAS GOING TO
IMPROVE THE ECONOMY STARTING ON
DAY ONE.
HE SAID PRICES ARE GOING TO COME
DOWN.
MORE THAN 160 MILLION AMERICANS,
MR. SECRETARY, AS YOU KNOW, ARE
INVESTED IN THE MARKET.
MANY OF THEM HAVE SPENT THEIR
LIVES SAVING FOR THEIR
RETIREMENT.
WHAT IS YOUR MESSAGE TO
AMERICANS WHO WANT TO RETIRE
RIGHT NOW AND WHO HAVE JUST SEEN
THEIR LIFETIME SAVINGS DROP
SIGNIFICANTLY?
>> KRISTEN, I THINK THAT’S A
FALSE NARRATIVE.
AMERICANS WHO WANT TO RETIRE
RIGHT NOW, THE AMERICANS WHO
HAVE PUT AWAY FOR YEARS IN THEIR
SAVINGS ACCOUNTS DON’T LOOK AT
THE DAY TO DAY FLUCTUATIONS OF
WHAT’S HAPPENING.
IN FACT, MOST AMERICANS DON’T
HAVE EVERYTHING IN THE MARKET.
THEY HAVE THOSE IN THE 401(K)
HAVE A 60/40 ACCOUNT, THE 60/40
ACCOUNTS ARE DOWN 5% OR 6% ON
THE AR, PEOPLE HAVE A
LONG-TERM VIEW.
THEY HAVE A PROGRAM THAT THE
REASON THE STOCK MARKET IS
CONSIDERED A GOOD INVESTMENT IS
BECAUSE IT’S A LONG-TERM
INVESTMENT.
IF YOU LOOK DAY TO DAY, WEEK TO
WEEK IT’S VERY RISKY.
OVER THE LONG TERM IT’S A GOOD
INVESTMENT.
>> PRESIDENT TRUMP’S TARIFFS ARE
BEING DESCRIBED AS THE BIGGEST
TAX HIKE ON AMERICANS IN
DECADES.
THEY COULD COST THE AVERAGE
HOUSEHOLD THOUSANDS OF DOLLARS.
REPUBLICAN SENATOR TED CRUZ HAD
THIS TO SAY.
I’LL PLAY IT AND GET YOUR
REACTION ON THE OTHER SIDE.
>> TARIFFS ARE A TAX ON
CONSUMERS AND I’M NOT A FAN OF
JACKING UP TAXES ON AMERICAN
CONSUMERS.
>> DO YOU ACKNOWLEDGE THAT
PRESIDENT TRUMP’S TARIFFS WILL
CAUSE PRICES TO GO UP ON A RANGE
OF GOODS?
>> KRISTEN, WHAT I LIKE IS DATA,
AND IF WE LOOK AT DATA FROM
PRESIDENT TRUMP’S FIRST TERM AND
THERE’S A BIG STUDY THAT JUST
CAME OUT FROM A GROUP OF
ECONOMISTS, MOSTLY OF M.I.T.,
THAT SHOWED THAT A 20% -- 20%
TARIFF ON CHINA LED TO A .7%
TAX -- PRICE LEVEL INCREASE OVER
FOR YEARS.
I THINK THAT’S PRETTY GOOD.
IF WE CAN TAKE IN 20% IN TARIFFS
AND IT’S A .7% INCREASE, AND
KRISTEN, THE LITTLE PUBLICIZED
STORY THIS WEEK, EVERYONE WANTS
TO LOOK AT THE STOCK MARKET
GOING DOWN.
YOU KNOW WHAT ELSE WENT DOWN?
OIL PRICES WENT DOWN ALMOST 15%
IN TWO DAYS WHICH IMPACTS
WORKING AMERICANS MUCH MORE THAN
THE STOCK MARKET DOES.
INTEREST RATES HIT THEIR LOW FOR
THE YEAR.
SO I’M EXPECTING THE MORTGAGE
APPLICATIONS TO PICK UP.
>> JUST TO BE VERY CLEAR,
THOUGH.
DURING PRESIDENT TRUMP’S FIRST
TERM, THE COST TO AMERICANS WAS
NEARLY $80 BILLION IN NEW TAXES,
PRICES DID GO UP FROM EVERYTHING
FROM WASHING MACHINES TO TIRES.
>> LET’S GO BACK.
THE AGGREGATE NUMBER WAS. .7.
WE CAN DISCERN THE THING.
HOUSEHOLDS SAW REAL NET WAGES GO
UP.
SO IF WAGES GO UP FASTER THAN
PRICES WHICH IS NOT WHAT
HAPPENED OVER THE PAST FOUR
YEARS, THAT’S YET BOTTOM 50% GOT
EVISCERATED.
>> LET ME ASK YOU ABOUT YOUR
VIEW BECAUSE LAST JANUARY YOU
WROTE THAT, QUOTE, TARIFFS ARE
INFLATIONARY.
THE FED CHAIR SAID THE SAME
THING ON FRIDAY THAT TARIFFS
ANNOUNCED THIS WEEK CAUSE HIGHER
INFLATION.
HAVE YOU EXPRESSED ANY CONCERNS
TO PRESIDENT TRUMP DIRECTLY THAT
HIS TARIFF POLICY COULD BE
INFLATIONARY?
>> WHAT I’VE SAID IS TARIFFS ARE
A ONE-TIME PRICE ADJUSTMENT.
SO THERE’S A BIG DIFFERENCE
BETWEEN INSIPID, ENDEMIC
INFLATION WITHIN THE SYSTEM AND
CONSISTENT PRICE LEVEL INCREASES
AND A ONE-TIME ADJUSTMENT, BUT
THE OTHER THING THAT WE’RE DOING
IS WE ARE RAISING WAGES FOR
WORKING AMERICANS.
WE’RE BRINGING DOWN REGULATION.
SO THEIR ESTIMATES, THEIR
REGULATIONS HAVE COST THE
AVERAGE HOUSEHOLD ABOUT $8,000.
WHEN WE GET THIS TAX BILL
THROUGH THEN WE WILL MAKE THE
TAX LEVELS PERMANENT, AND AGAIN,
THE DROP IN THE ENERGY PRICES,
THE DROP IN INTEREST COST -- I
THINK, REAL AFTER-TAX WAGES ARE
GOING TO GO UP FOR AMERICANS AND
THAT’S WHAT’S IMPORTANT.
>> ONE OF THE BIG QUESTIONS AND
POINTS OF CONFUSION, I THINK, IS
ARE THESE TARIFFS PERMANENT OR
ARE THEY A NEGOTIATING TACTIC?
SOME ADMINISTRATION OFFICIALS
SAY THEY’RE PERMANENT AND
PRESIDENT TRUMP HIMSELF HAS SAID
HE’S OPEN TO NEGOTIATING.
IS PRESIDENT TRUMP WILLING TO
NEGOTIATE OR ARE THESE TARIFFS
PERMANENT?
>> I THINK THAT WILL BE A
DECISION FOR PRESIDENT TRUMP,
BUT I CAN TELL YOU THAT AS ONLY
HE CAN DO AT THIS MOMENT, HE’S
CREATED MAXIMUM LEVERAGE FOR
HIMSELF AND MORE THAN 50
COUNTRIES HAVE APPROACHED --
HAVE APPROACHED THE
ADMINISTRATION ABOUT LOWERING
THE NON-TARIFF TRADE BARRIERS
AND LOWERING THE TARIFFS AND
STOPPING CURRENCY MANIPULATION.
THEY’VE BEEN BAD ACTORS FOR A
LONG TIME AND IT’S NOT THE KIND
OF THING YOU CAN NEGOTIATE AWAY
IN DAYS OR WEEKS.
>> YOU YOURSELF HAVE SAID HE’S
USING THIS FOR NEGOTIATING.
HE HAS TOLD ME DIRECTLY HE’S
OPEN TO NEGOTIATING.
VERY CLEARLY FOR THE AMERICAN
PEOPLE, CAN YOU SAY
DEFINITIVELY, IS HE PLANNING TO
NEGOTIATE?
HAS HE STARTED NEGOTIATIONS?
>> I THINK WE HAVE TO SEE WHAT
THE COUNTRIES OFFER AND WHETHER
IT’S BELIEVABLE BECAUSE AGAIN --
>> HE’S OPEN TO IT IS WHAT I
HEAR YOU SAYING.
>> NO.
NO, NO, NO.
I THINK THAT WE ARE GOINGING TO
powered by the makers of NyQuil. HAVE TO SEE THE PATH FORWARD
BECAUSE AFTER 20, 30, 40, 50
YEARS OF BAD BEHAVIOR YOU CAN’T
JUST WIPE THE SLATE CLEAN.
>> ALL RIGHT.
LET ME ASK YOU ABOUT ONE OF THE
BIG QUESTIONS, RECESSION, AS YOU
KNOW, THE CHANCES OF A RECESSION
ARE RISING IN THE WAKE OF THE
TARIFFS ANNOUNCED THIS WEEK.
DO YOU BELIEVE THAT PRESIDENT
TRUMP’S TARIFFS ARE RISKING THE
CHANCES OF A RECESSION?
>> I DON’T, AND I THINK WE CAN
SEE FROM THE JOBS NUMBER ON
FRIDAY THAT IT WAS WELL ABOVE
EXPECTATIONS THAT WE ARE MOVING
FORWARD.
SO I SEE NO REASON THAT WE HAVE
TO PRICE IN A RECESSION.
?
OKAY.
BEFORE I LET YOU GO, I KNOW
YOU’VE BEEN ONE OF THE OFFICIALS
SPEARHEADING THE EFFORTS TO GET
PRESIDENT TRUMP’S BUDGET BILL
PASSED ON CAPITOL HILL.
IT INCLUDES THE PRESIDENT’S
PLANS FOR TAX CUTS, EXTENDING
THE 2017 TAX CUTS, FOR EXAMPLE.
ARE YOU CONFIDENT THAT THE
PRESIDENT’S BUDGET BILL WILL
PASS BEFORE THE AUGUST RECESS?
>> WE ARE SHOOTING FOR EVEN A
MUCH EARLIER DATE AND KRISTEN, I
CAN TELL YOU THE UNDERREPORTED
STORY IN D.C., IT’S FUN FROM OUR
SIDE OF THE AISLE TO WATCH THE
DEMOCRATIC CHAOS AND THE
UNDERREPORTED STORY SPEAKER
JOHNSON HAS DONE AN INCREDIBLE
AND HE’S GOTTEN CONTINUING
RESOLUTIONS, AND SPEAKER THUNE,
THE NATION ISSUED RECONCILIATION
INSTRUCTIONS SO THINGS ARE
MOVING VERY QUICKLY.
>> VERY QUICK LE.
PRESIDENT TRUMP CALLEDED ON THE
FED CHAIR TO LOWER INTEREST
RATES.
DO YOU THINK THAT FED CHAIR
JEROME POWELL SHOULD LOWER
INTEREST RATES?
>> I THINK THAT WHEN WE SEE
INFLATION DROPPING THAT THE FED
WILL DO WHAT IT ALWAYS DOES AND
LOWER RATES, BUT IN THE
MEANTIME, WHAT WE CAN CONTROL IS
THE LONGER TERM RATE, THE
TEN-YEAR RATE, WHICH HIT A NEW
LOW ON FRIDAY.
THAT’S WHERE MORTGAGES ARE
PRICED, THAT’S WHERE LONG-TERM
CAPITAL FORMATION IS PRICED AND
BACK TO THE TAX DEAL, WHEN WE
CAN PASS THAT, WE WILL HAVE
ECONOMIC CERTAINTY.
?
OKAY.
WE’LL BE WATCHING FOR THAT
TIMELINE YOU JUST LAID OUT