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A tense moment unfolded during a Senate confirmation hearing as Senator Elizabeth Warren challenged President Trump's nominee for the White House Council of Economic Advisers, Christopher Phelan, over inflation and wage growth. Warren argued that inflation at 4.2% is outpacing wage growth at 3.4%, putting financial pressure on American families. The exchange has sparked debate over the economy, inflation, wages, and the direction of U.S. economic policy under President Donald Trump.

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00:00So, Dr. Phelan, if you are confirmed, your job would be to advise President Trump on economic policy.
00:07The Council of Economic Advisers is, quote,
00:11charged with offering the President objective economic advice.
00:17Not political advice, objective economic advice.
00:20So let's go through a few objective facts.
00:23Americans are spending more on everything from gas to groceries.
00:27Prices are rising faster than paychecks.
00:31And Trump's one big, beautiful bill rips away health care coverage for 15 million people
00:37in order to pay for tax cuts for billionaires and giant corporations.
00:43And it adds $4.7 trillion to the national debt.
00:49And that is why we need someone who will tell the truth about the economy
00:53and not just say whatever it is the President wants them to say.
00:58So, you have a Ph.D. in economics from a very prestigious university.
01:02You've been a professor for nearly 30 years.
01:05You've taught thousands of students by this point.
01:09On paper, you look like someone who should be able to provide objective advice.
01:15So, I have some questions and, quite frankly, I hope they are really easy questions for you.
01:22President Trump promised to bring prices down on, quote, day one.
01:28Is headline inflation higher today than it was in February 2025?
01:37Thank you, Senator.
01:40Headline inflation now is certainly lower than it was during the Biden administration.
01:48I'm sorry.
01:49Come on.
01:49Let's not play this game.
01:50You heard my question.
01:52President Trump was sworn in in January 2025 under the promise he would lower costs on day one.
01:59The question I'm asking is, is inflation, headline inflation, today higher than it was in February 2025?
02:10It's a fact question.
02:13Thank you, Senator.
02:15There is a reason economists tend to focus on core inflation, and that is because food and energy is quite
02:21volatile.
02:22Okay.
02:23Can you give me the answer?
02:23More inflation is lower than when President Trump took office.
02:26Can you give me – we'll do core.
02:26Can you give me the answer on headline inflation?
02:30I don't want to know how fast you can dance.
02:33I want to know if you can answer simple, factual questions.
02:37That's all I'm looking for here.
02:40Thank you, Ranking Member.
02:42I do not know exactly what the headline inflation was on January 20th, 2025.
02:472.8%.
02:49So answer the question.
02:51Is headline inflation higher today than it was in February 2025?
02:58Headline inflation now, the last one was year over year, 4.2%.
03:04Okay.
03:05So is 4.2% higher than 2.8%?
03:11Ranking Member, yes, it is.
03:12Oh, wow.
03:13Was that so hard?
03:15You know, you're going to be the guy I called on to give real facts.
03:20So let me try another one.
03:22Dr. Phelan, is annual inflation higher than wage growth today?
03:30Thank you, Ranking Member.
03:33There has been, since President Trump took office, weekly inflation-adjusted earnings are higher now
03:41than they were the day President Trump took office.
03:44The question I asked you is, is inflation higher than wage growth right now?
03:51In other words, even if families are getting raises, on average, are they falling behind because of inflation?
03:59Thank you, Ranking Member.
04:00I do think it's important to have an appropriate time frame when considering anything like this.
04:05An appropriate time frame is when President Trump took office.
04:10The question is, I just want a fact.
04:12If somebody says to you, today are families getting ahead or falling behind, you've got one word to answer that.
04:19What's your word?
04:20My word is at.
04:23Real wages are higher now.
04:25At?
04:25That's your one word?
04:26At?
04:26Real wages are higher now than they were at the beginning of Trump's administration.
04:30You've already told me inflation is 4.2 percent, right?
04:34What's the annual wage growth right now?
04:37It's just a fact question.
04:39Thank you, Senator.
04:39I do not have that in front of me right now.
04:41It's 3.4 percent.
04:43So, let's put this one together.
04:46Is 4.2 higher than 3.4?
04:50I will repeat what I said, which is real wage growth in this administration is positive.
04:57It is right now families are falling behind.
05:01And I've got to say, I can keep this one up, fact after fact, but you have now made clear
05:07what your position is.
05:08And that is you can't even do the basic facts.
05:11I didn't even get to the hard questions here about what this means.
05:15I just want to start with what the facts are.
05:18These are facts that come out of the Trump administration.
05:21They're there for anybody to see.
05:24And you can't bring yourself as the person who sits there and says, I want to be the head of
05:30the Council of Economic Advisors.
05:32Oh, I'm sorry, to give objective economic advice.
05:37And you can't even say, yeah, inflation is running higher than wages right now.
05:43And we're still going to try to keep it on behalf of the chairman to five minutes.
05:47Fair enough.
05:47I think this person has disqualified himself in five minutes.
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