Headline: Treasury Secretary Bessent Admits Error on Tariffs and Inflation - USDST

[Para 1: The Lead] U.S. Treasury Secretary Scott Bessent acknowledges his earlier misjudgment regarding tariffs' inflationary impact, correcting public records. This admission comes amidst rising U.S. Producer Price Index (PPI) data, signaling potential inflationary pressures despite economic growth. Bessent's statement underscores a shift in economic policy discourse. [Para 2-3: Supporting details & Context] Bessent, during a House Financial Services Committee hearing, corrected his stance on tariffs, stating, "I was also mistaken when I said the tariffs could be inflationary." This follows December's PPI data revealing a larger-than-expected inflation spike, indicating potential future inflationary trends. The U.S. economy is currently growing, but the Secretary's admission highlights the evolving understanding of economic factors influencing inflation. The correction reflects a nuanced approach to economic forecasting and policy adjustments in response to real-time economic data.