During a recent hearing, Rep. Maxine Waters reignited a memorable phrase from her past, “reclaiming my time,” in a spirited exchange with Treasury Secretary Scott Bessent that resonated with many due to its echo of a previous clash between Waters and former Treasury Secretary Steven Mnuchin. This heated dialogue centered on the significant issues of tariffs, inflation, and housing affordability—topics that are increasingly pressing for American voters as the midterms approach.
The exchange began when Waters challenged Bessent on whether tariffs are inflationary. Bessent pointed to data from the San Francisco Federal Reserve, asserting that tariffs do not traditionally drive inflation. However, Waters countered this by highlighting rising costs for essential goods such as coffee and bananas, noting that the high tariffs imposed during the Trump administration have exacerbated the housing crisis by making construction materials like lumber and steel more expensive.
Bessent, defending the administration’s position, emphasized that lumber prices were actually at a five-year low, dismissing Waters’ claims about tariffs’ effects on housing affordability. His comments drew repeated interjections from Waters, creating a dramatic moment in the hearing as she demanded assistance to silence him.
As the debate unfolded, both participants presented critical points about the current economic climate. While Waters correctly argued that tariffs have contributed to increases in prices for certain consumer goods, Bessent maintained that significant tariff spikes do not result in widespread price inflation. The conclusion drawn from the San Francisco Fed’s analysis suggests that while tariffs can lead to temporary price increases, they do not consistently fuel ongoing inflation, suggesting a more nuanced understanding of the economic impacts at play.
The discussion around housing affordability revealed another layer to the issue. Bessent attributed soaring housing prices to increased immigration, citing studies indicating that demand for housing in areas with high immigrant populations outpaces supply. However, Waters reminded the committee of the integral role that immigrants play in the construction sector, which is crucial in addressing the nation’s housing shortfall.
Interestingly, the debate about lumber prices highlighted a paradox where tariffs initially drove supplies, leading to a price glut that ultimately caused a drop in costs in the latter half of 2025. As interest rates decrease and new building incentives are introduced, housing supply may begin to meet demand more effectively, potentially stabilizing prices.
This hearing not only showcased the contentious relationship between Waters and Bessent but also underscored the complex layers of affordability issues that millions of Americans face today. Federal decisions surrounding tariffs, immigration, and housing policy remain crucial as voters look for effective solutions to pressing economic concerns as the midterm elections draw near. The ongoing discussions in Congress could pave the way for impactful changes that address affordability and housing stability, offering hope for families grappling with economic challenges.