Waters and Bessent Clash Over Trump Tariffs, Inflation and Housing Costs in Fiery House Hearing
Rep. Maxine Waters and Treasury Secretary Scott Bessent sparred during a Feb. 4, 2026 House Financial Services Committee hearing, debating whether President Trump’s tariffs raise consumer prices, worsen housing affordability and shape broader economic policy.
- Sharp exchanges: Waters demanded yes-or-no answers and repeatedly interrupted Bessent, including the line, “Can you shut him up?”
- Policy dispute: Waters argued tariffs are inflationary and raise housing costs; Bessent said tariffs play a modest role versus larger macro factors.
- Legal stakes: A pending Supreme Court decision on 2025 tariffs could reshape presidential trade authority and future tariff actions.
- Local impact: Los Angeles could feel higher grocery, retail and construction costs if tariffs remain or expand, affecting housing affordability and jobs.
Waters presses for a straight answer
Rep. Maxine Waters (D-Calif.), the ranking member of the House Financial Services Committee, repeatedly pressed Treasury Secretary Scott Bessent to commit to being “the voice of reason” inside the administration and to urge President Trump to end tariffs she called a “war on American consumers.” Waters insisted on simple yes-or-no answers without explanation, arguing the policy harms shoppers and home buyers. Sources cited in the hearing and coverage include Fortune and Fox News.
Waters cites Bessent’s prior comments
Waters referenced a 2024 letter to hedge fund investors in which Bessent described tariffs as “inflationary” and said they tend to strengthen the dollar. She also mentioned a television comment in which Bessent suggested cutting tariffs on goods such as coffee and bananas to quickly lower prices — points drawn from reporting and video clips captured in the hearing record (Fortune, YouTube).
Bessent defends administration policy
Secretary Scott Bessent pushed back, arguing tariffs have only a modest effect on GDP and are not the primary driver of inflation. He cited long-term data and historical patterns — including research from the San Francisco Federal Reserve — to contend that major price shocks typically arise from wars, oil crises and monetary decisions. Bessent has previously used the phrase “tariff derangement syndrome” to mock critics of tariff policy (Fortune).
Immigration, housing supply and the interruption
When Bessent began discussing how immigration affects housing supply — noting that 10 million to 20 million more people influence housing demand — Waters interrupted and accused him of lacking dignity. Her time expired amid the exchange and Chairman Rep. French Hill (R-Ariz.) called attention to the time limit as the back-and-forth continued (Fortune).
What the evidence shows about tariffs and inflation
Economic research presents a mixed picture. Some studies show tariffs raise prices for imported goods and can increase costs for downstream industries such as construction and manufacturing. Other analyses find tariffs have a modest effect on headline inflation because services compose a larger share of the U.S. economy. Waters emphasized household-level impacts — everyday goods like coffee, bananas and imported appliances — while Bessent and some economists stress historical context and alternative drivers of price spikes (Fortune, YouTube).
Housing affordability and supply arguments
Waters alleged tariffs on lumber, steel and appliances contribute to higher construction costs and could be blocking the construction of roughly half a million homes amid an existing shortage. Bessent disputed the claim on prices and supply, noting lumber futures had traded lower than prior highs (he cited a figure near $589.50 per thousand board feet at one point) while again pointing to immigration as a driver of demand. Critics said invoking immigration deflects from trade and materials policy choices (Fortune).
Legal stakes: the Supreme Court and presidential authority
The hearing occurred as the administration awaited a Supreme Court decision on whether some 2025 trade duties exceeded presidential authority. A ruling against the administration could alter or limit current tariff actions and reshape how trade policy is carried out (Fox News).
Hearing tone and broader context
The exchange extended beyond tariffs: Democrats at times shouted and interrupted as the committee covered crypto regulation and questions about the Trump family’s business interests. Video clips show sharp exchanges and moments of chaos captured by multiple outlets (Notus, Economic Times, YouTube).
Implications for Los Angeles, California
Economic impact: Angelenos could feel tariff effects in grocery and retail prices and in the local housing market. As a hub with major ports like the Port of Los Angeles and Port of Long Beach, shifts in tariff policy can ripple through supply chains and warehouse jobs (Fortune, YouTube).
Housing affordability: Los Angeles’ deep housing shortage and high rents mean any increases in lumber, steel or appliance costs could raise construction bids, slow projects and push out renters and first-time buyers.
Jobs and industry: Tariffs can protect some manufacturing and port jobs while increasing costs for construction, retail and restaurants — producing uneven effects across neighborhoods and sectors (Fortune, Notus).
Practical effects for residents
If tariffs remain or expand, Angelenos could see higher grocery and hardware prices, slower housing starts and upward pressure on rents and mortgage costs as supply fails to meet demand.
Reporting notes and sources
This article draws on reporting and video of the Feb. 4, 2026 House Financial Services Committee hearing and contemporaneous coverage. Primary sources used:
“Can you shut him up?” — Rep. Maxine Waters, during the Feb. 4, 2026 hearing
