• Treasury Secretary Scott Bessent says the administration is making "substantial progress" on inflation and expects prices to decline in the coming months.
  • Real wages are improving for many Americans, with categories like gasoline already showing significant price drops.
  • A new rare earth processing plant in South Carolina is cited as evidence of manufacturing initiatives that will boost domestic supply chains and reduce reliance on China.

Treasury Secretary Scott Bessent declared that the administration is making significant headway in its battle against inflation, forecasting that consumers will see price declines "over the coming months and over the next year."

Speaking at a time when inflation remains around 3% year-on-year, Bessent pointed to specific categories where costs have already eased substantially. "We are seeing real progress," he said, emphasizing that "real wages are improving for many Americans" after previous declines. The most notable relief has come at the gasoline pump, where prices have retreated from recent peaks.

Efforts to combat inflation have encountered a significant headwind from the ongoing government shutdown, which Bessent warned could halve economic growth if it persists. The shutdown threatens to disrupt supply chains and potentially create consumer product shortages, complicating the administration's inflation fight.

Bessent linked part of the expected price moderation to manufacturing initiatives, specifically highlighting the recent opening of a new rare earth processing facility in South Carolina. The plant represents a strategic move to bolster domestic supply chains and reduce dependence on Chinese imports for critical materials. "Projects like this are essential for bringing down prices and restoring America's industrial competitiveness," he stated, according to people familiar with his remarks.

The Treasury Secretary framed the current economic situation as a transition period where the administration first halted surging prices and is now pursuing outright reductions. This characterization comes as consumers, particularly low- and middle-income Americans, continue to express frustration with elevated costs for essentials like groceries and electricity.

When reached for additional comment, a Treasury spokesperson reiterated that while the federal government's role in controlling certain prices is limited—especially for utilities regulated at the state level—the administration's manufacturing and supply chain policies are designed to deliver broader affordability gains through increased domestic production.

Correction: An earlier version of this article misstated the current inflation rate. It remains around 3% year-on-year, not below 3%.