In a stunning revelation on “Special Report,” Secretary Scott Bessent has ignited a firestorm of debate over the impact of tariffs on the U.S. economy, asserting that manufacturers are currently absorbing costs rather than passing them onto consumers. As inflation rates dip for the first time in four years, Bessent’s insights come at a critical juncture, with the Federal Reserve grappling with its next moves amidst growing economic uncertainty.

Bessent’s comments follow a significant earnings call from Walmart, which claimed to be well-positioned to handle cost pressures from tariffs. However, he cautioned that while prices may not have surged yet, a one-time price adjustment could still be on the horizon. The stakes are high as the market anticipates potential interest rate cuts, influenced by the Fed’s cautious stance on inflation.

Adding to the tension, reports have surfaced of BRICS nations, including India, China, and Russia, strategizing to counter U.S. tariffs. Bessent dismissed these discussions as largely performative, emphasizing that despite their efforts, every country still craves access to the lucrative U.S. market. He pointed out that while the U.S. has imposed secondary tariffs on India for purchasing Russian oil, the situation remains fluid, with China’s negotiations being a complex chess game of economic and military stakes.

As the Trump administration pushes for aggressive tariff policies as tools of foreign policy, Bessent remains optimistic about a forthcoming economic boom fueled by massive investments from tech giants like Apple and Micron Technology. With billions in capital expected to flow back into the U.S., the potential for job creation and economic expansion looms large.

As the situation unfolds, all eyes will be on the Federal Reserve and the broader market’s response to these seismic shifts in trade and economic policy. The urgency for clarity and decisive action is palpable as the implications of these tariffs ripple through the global economy.