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(Bloomberg) -- Treasury Secretary Scott Bessent downplayed concerns over the US’s government debt and the inflationary impact of tariffs on companies including Walmart Inc., saying the Trump administration is determined to lower federal spending and grow the economy.
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Asked about the Moody’s Ratings downgrade of the country’s credit rating Friday during an interview on NBC’s Meet the Press with Kristen Welker, Bessent said, “Moody’s is a lagging indicator — that’s what everyone thinks of credit agencies.”
“We didn’t get here in the past 100 days,” he said Sunday. “It’s the Biden administration and the spending that we have seen over the past four years that we inherited” and “we are determined to bring the spending down and grow the economy.”
Bessent also said he spoke Saturday with Walmart Chief Executive Officer Doug McMillon to discuss recent indications that the world’s largest retailer is going to raise prices because of higher import taxes. President Donald Trump on Saturday said Walmart should stop trying to blame tariffs as the reason for raising its prices and “eat the tariffs” instead.
“Walmart is, in fact, going to – as you describe it — eat some of the tariffs just as they did in ’18, ’19 and ’20,” Bessent said. “Overall, we are seeing a decline in services inflation and we saw inflation come down for the first time in four years.”
Bessent said he didn’t apply any pressure on the retailer. “Doug and I have a very good relationship so I just wanted to hear it from him rather than second- and third-hand from the press,” he said. “This is all from their earnings call and on an earnings call you have to give the worst-case scenario.”
Bessent said the Federal Reserve is “not saying that tariffs will cause inflation, they’re saying they’re not sure and that they’re in wait-and-see mode.”
Almost a week after announcing a tariff truce with China, Bessent said that “we now have a mechanism in place to continue talks.”
For other countries, though, the rate might be imposed unilaterally, he said, elaborating on comments Trump made last week.
“This means that if they’re not negotiating in good faith, they are going to get a letter saying here is the rate, so I would expect that everyone would come and negotiate in good faith,” he said. Those that get the letter will face the tariff rate that the White House announced on April 2, he said.