Treasury Secretary Scott Bessent clashed with lawmakers Tuesday as Democrats criticized his handling of the economy, from inflation and tariffs to the war in Iran.

The House Financial Services Committee hearing, which was disrupted by protests, came as the Federal Reserve weighed an interest rate hike that would be the first in three years.

Bessent faced tense exchanges with lawmakers and defended what he called an impressive economic turnaround by the Trump administration.

“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,” Bessent said.

Democrats repeatedly pressed Bessent on the war, which has led to record-breaking fuel prices.

“The American people are suffering,” said Rep. Ayanna Pressley, D-Mass. “You know better. ... You say that Trump’s economic agenda is a great comeback, and that makes me question not only your integrity, but if you’re operating in the same reality.”

The hearing also came amid growing anxiety about the bond market and higher borrowing costs for Americans, as the 10-year Treasury yield stretched past the critical 5% mark.

When questioned about President Donald Trump’s pledge to give each American $5,000 if Republicans win the midterm elections, Bessent voiced support.

“Do you have any apprehensions about a $1.8 trillion deficit that would be impacted even more negatively if every American received $5,000 from the federal government?” asked Rep. Emanuel Cleaver, D-Mo..

“I think putting more money in Americans’ pockets should be an objective for everyone,” Bessent replied.

Federal Reserve Chair Kevin Warsh is expected to raise short-term interest rates Wednesday afternoon in an effort to bring inflation below the 2% target. The decision would put the Fed at odds with Trump, who has called for lower rates.