During a recent segment on “Fox News Sunday,” National Economic Council Director Kevin Hassett discussed the state of the economy and defended President Trump’s policies. Host Shannon Bream pressed him on a common concern among Americans: the impact of high energy prices on overall economic well-being.
Bream kicked off the conversation by referencing polling data that reflects public sentiment. “You know how people are feeling,” she noted, emphasizing the uncertainty many Americans face. She asked, “When can you tell Americans that things are actually gonna get better?” This question set the stage for Hassett’s defense of the administration’s economic record.
Hassett acknowledged the reality of elevated energy prices. “It’s absolutely true that energy prices are high and that affects the top line,” he stated, referencing their influence on the consumer price index and the personal consumption expenditures (PCE) that the Federal Reserve monitors. However, he argued that these price increases do not fully reflect the health of the overall economy. “If you dig down and look at what’s happening to everything else, then you are not seeing a lot of feed through from the high energy prices to everything else,” he explained, suggesting that core inflation remains stable.
He emphasized that core inflation—excluding volatile costs like gas—is not experiencing significant growth. “For sure, there is a short-term disruption with energy prices,” he conceded, but reassured viewers that “core inflation isn’t taking off.” This distinction is crucial as it indicates that the broader economic indicators remain resilient against energy price spikes.
Real incomes, according to Hassett, present a more promising picture. He asserted that the typical American family has gained about $3,000 since President Trump took office, contrasting this with the economic challenges faced under the Biden administration, where he claimed families lost over $3,000 when adjusted for inflation. “Even with the higher price of energy, real incomes are on the rise,” he said, driving home this point with confidence.
Bream pushed further, citing concerns about inflation outpacing wage growth. “So, if people are making more money, but things are costing more, how do you answer that question and that concern?” she asked. Hassett’s response leaned on the framing of personal income data, arguing that it includes various components such as government transfers, which the administration is trying to reduce to create a “leaner and meaner” government.
“The best measure right now is to look at the wage data,” Hassett asserted. This measurement, he clarified, shows significant increases, reinforcing his argument that American families are experiencing rising wages despite inflationary pressures.
Bream turned the conversation back to energy prices, citing a staggering statistic. “86 percent of Americans tell us that gas prices are a problem for their family,” she reported, with many calling it a major concern. This reality highlights the weight of energy costs on the average American’s budget.
When asked about the timeline for price improvement at the pump, Hassett responded optimistically. He spoke about ongoing efforts to alleviate supply issues and detailed logistical improvements: “There are already a lot more ships getting through the straits than were getting through before.” With the expectation that oil shipments will improve, he anticipated a subsequent rise in U.S. gasoline production. As the situation stabilizes, Hassett was optimistic that “those prices [at the pump] will reverse.”
This exchange on “Fox News Sunday” illustrates the administration’s efforts to navigate the complex landscape of high consumer costs while assuring the public that economic fundamentals remain strong. Hassett’s insistence on focusing on core inflation and real wage growth provides a counter-narrative to the prevalent concerns about rising prices, aiming to instill confidence in President Trump’s economic management.
Ultimately, this dialogue illustrates the balancing act required from economic leaders as they work to assure the public while acknowledging real pressures that many face. The insistence on tangible improvements in wages amidst cost concerns reveals a commitment to addressing economic well-being, one statistic at a time.
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