Scott Bessent on Tariffs, the Fed and the Economy

Overview of the Conversation

At the DealBook Summit on Wednesday, the U.S. Treasury Secretary sat down with Andrew Ross Sorkin for an in‑depth discussion about the nation’s trade policy, the Federal Reserve’s outlook, and the broader economic outlook.

Tariffs and Trade Policy

The Secretary emphasized that the administration remains committed to a balanced approach on tariffs, seeking to protect domestic industries while avoiding unnecessary disruptions to global supply chains. He highlighted recent negotiations with key allies and noted that “targeted measures can be effective, but broad‑based tariffs risk harming both consumers and businesses.”

The Federal Reserve’s Role

Regarding the Fed, Bessent clarified that the Treasury respects the central bank’s independence but is closely monitoring inflation trends. He stated that “the Treasury will cooperate with the Fed to ensure that monetary policy supports sustainable growth without stoking inflationary pressures.”

Economic Outlook

The Secretary painted a cautiously optimistic picture of the U.S. economy. While acknowledging lingering challenges—such as supply‑chain bottlenecks and uneven labor market recovery—he pointed to strong consumer spending and resilient job creation as positive signals. “We are seeing a steady, if modest expansion,” he said.

Implications for Investors

Investors were advised to stay vigilant, diversify portfolios, and watch for policy signals that could affect market volatility. Bessent warned that “short‑term shocks are inevitable, but a disciplined, long‑term strategy remains the best path forward.”