Treasury Secretary Scott Bessent is using his annual House Financial Services Committee appearance to argue the economy's strength has powered a sweeping sanctions push tied to the Iran war and to highlight pay gains for workers at the lower end of the wage scale. In prepared remarks obtained by CNBC, he plans to tell lawmakers, "The strength of our economy has allowed the United States to wage the greatest economic isolation campaign in the history of the world against the Islamic Republic of Iran and its enablers."
His testimony falls under the House and Senate's supervision of the International Monetary Fund, a Washington institution founded in 1944 to promote stability in the global financial system. Bessent has criticized the IMF for straying from its central mandate, and Dan Katz, who previously served as his chief of staff, was elevated to the fund's No. 2 position last year. He will also stress that the U.S. government's priority is "ensuring that American time and resources serve American interests."
Lawmakers are likely to range far beyond the IMF. Over the past year, the consumer price index has risen 3.4%, and investors are tilting toward another Federal Reserve rate hike. Crude has pushed above $100 per barrel amid renewed fighting in the Iran war, driving up prices at the pump.
AAA estimates the nationwide average price of gasoline at $4.32 per gallon as of Monday, an increase of $1.14 from a year ago. Diesel is at $6.23, an increase of $2.54 year over year. Bessent has been an outspoken supporter of the war, and Treasury has tightened sanctions on Iran and on banks that help carry out its business.
Democrats are poised to press Bessent about President Donald Trump's push on Fed Chair Kevin Warsh not to raise rates. Trump has argued that the Fed should cut rates, even as markets price in a hike. Bessent has long been close to Warsh and, by custom, holds a weekly meeting with the Fed chair.
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Interest costs are in the spotlight too. The national debt has climbed past $40 trillion. A heavy supply of new debt, rising spending tied to artificial intelligence, and higher oil prices have helped lift government funding costs.
The 10-year Treasury yield briefly hit 5.0% on Monday before easing. That level also reflects some investor optimism about U.S. growth, but it feeds through to pricier consumer borrowing, with the average 30-year fixed mortgage rate topping 7% last week.
Republicans and Bessent can point to bright spots. Stocks have been choppy lately but remain near highs, with the S&P 500 up about 27% since Trump began his second term. The job market continues to add positions as the administration slows immigration, and unemployment is a low 4.1%.
Bessent's prepared remarks say pay for the lowest quarter of earners has been rising faster than pay at the top. He will also note that no fewer than 64 million tax returns have taken one of the tax cuts enacted last year. Set that against cost pressures you can feel: oil over $100, a 10-year yield that tagged 5.0%, and mortgage averages that pushed above 7% last week. Add it up and you have a test of how Washington balances sanctions, growth and affordability, which shows up directly in household budgets.
A photo caption notes U.S. Treasury Secretary Scott Bessent spoke during a press conference at the Treasury Department in Washington, D.C., on Aug. 24, 2026. Listen for how officials connect the dots on sanctions, fiscal policy and inflation, because those choices influence your borrowing costs and everyday prices.
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