Representative Maxine Waters and Treasury Secretary Scott Bessent engaged in a heated exchange during a House Financial Services Committee hearing, with Waters asking the committee chairman to silence Bessent after he repeatedly interrupted her questions about tariffs and inflation.
Fiery Committee Room Exchange
Waters, the Democratic ranking member, attempted to question Bessent about whether tariffs cause inflation, but grew frustrated when he continually spoke over her responses. Despite Waters repeatedly using her signature phrase “reclaiming my time,” Bessent persisted in interrupting. The confrontation escalated when Waters turned to Committee Chairman French Hill, demanding, “Can you shut him up?” Hill did not assist, allowing the tense exchange to continue unabated.
Secretary Bessent is a national treasure. https://t.co/jKznGfFpiO
— Karoline Leavitt (@karolineleavitt) February 4, 2026
Bessent defended his position by citing San Francisco Federal Reserve data spanning 150 years, claiming tariffs do not cause inflation. Waters countered by pointing to rising prices for specific goods like coffee and bananas, arguing that the Trump administration’s tariffs on lumber and steel have worsened the housing affordability crisis. The exchange grew more heated when Bessent attributed housing cost increases to immigration policy rather than trade measures.
The Economics Behind the Argument
Both officials presented valid economic points that highlight current policy debates. Waters correctly noted that tariffs have increased prices for certain imported goods, particularly before the administration exempted some produce from tariff policies. Furniture and clothing prices have risen due to overseas manufacturing dependencies. However, Bessent accurately referenced Federal Reserve research showing that major tariff increases historically do not trigger broad-based inflation patterns.
🔥🚨 BREAKING: Sec. Scot Bessent BODIES Rep. Stephen Lynch (D-MA) then Rep. Lynch has a MELTDOWN.
BESSENT: "Well, the Biden Administration…"
LYNCH: "SIR, BE RESPONSIVE TO MY QUESTION!"
BESSENT: "I am, sir."
LYNCH: "Mister Chairman, the answers have to be responsive if we… pic.twitter.com/ieU7h97RRh
— The Patriot Oasisâ„¢ (@ThePatriotOasis) February 4, 2026
Economic Impact and Political Implications
The Federal Reserve data suggests tariffs create economic uncertainty that initially dampens consumer demand, counterbalancing price increases through reduced spending and temporary unemployment rises. Unemployment increased from four percent to 4.4 percent throughout 2025, while annual inflation decreased slightly from three percent to 2.7 percent. This exchange mirrors Waters’ viral 2017 confrontation with former Treasury Secretary Steven Mnuchin, demonstrating ongoing tensions between congressional Democrats and Trump administration officials over economic policy approaches and affordability concerns heading into the midterm elections.