What did Scott Bessent actually say about tariffs and inflation?

Scott Bessent clarified that tariffs act as a one-time price shock rather than a persistent source of inflation. That framing suggests policymakers need not extend rate hikes if broader inflation trends keep cooling. Markets read this as supportive for risk assets sensitive to rates, trade, and supply chains.

How does this affect Canadian investors and the Bank of Canada?

If tariffs are seen as transitory, it may ease rate expectations. That supports CAD-based portfolios with U.S. exposure and helps sectors sensitive to financing costs. The Bank of Canada will still focus on core and shelter inflation, but a lower perceived persistence lowers the risk of a tighter-for-longer stance.

Which sectors might benefit if tariffs are treated as one-off shocks?

Import-reliant retailers, logistics, machinery, autos, and builders could gain from steadier rate expectations and reduced margin stress on inputs. Canadian names tied to cross-border trade and construction materials may see sentiment improve if financing costs stabilize and supply chains run more predictably.

Is the ^GSPC overbought right now?

Not by classic signals. RSI at 57.52 is below overbought levels, while MACD remains positive and ADX shows a weak trend. Price is near the upper Bollinger Band, so short-term consolidation is possible. A decisive close above resistance with firm volume would strengthen the bullish case.

Law and Government

^GSPC Today, February 07: Bessent Tariff Rhetoric Eases Inflation Jitters

ByHuzaifa Zahoor February 7, 2026February 7, 2026

Scott Bessent moved markets today with a clear line on tariffs and inflation after a tense appearance in a Maxine Waters hearing. He framed tariffs as a one-off price shock, not a lasting driver of inflation. That message can temper rate fears and support risk assets. For Canadian investors, this matters for Bank of Canada expectations, CAD exposure, and housing affordability. With ^GSPC near recent highs and policy risks shifting, we map what to watch and how to position into North American trading.