National Economic Council (NEC) director Kevin Hassett dismissed negative economic polling on Monday, arguing that the U.S. economy is in a boom. Hassett said during an interview with host Joe Kernen on CNBC's "Squawk Box" that consumer spending indicates the economy remains strong. Hassett argued that Americans would not be visiting nice hotels, flying or buying cars if the economic polls were correct. Hassett said economic sentiment is best measured by what Americans do. Hassett argued that Americans are acting as though the economy is in a boom because the economy is in a boom, despite the polls.
Consumer spending increased by $190.7 billion from July to August. The spending figure took into account annual inflation of 3.4 percent, as measured by the personal consumption expenditures price index. However, the Conference Board said consumer confidence declined in September to the lowest level since 2014. The University of Michigan's Surveys of Consumers index preliminarily put consumer confidence at 46.3 in October, down 13.6 percent year-over-year. The survey will release final data for this month on Friday.
The unemployment rate remains below 5 percent. However, inflation remains above the Federal Reserve's 2 percent target. The consumer price index showed annual inflation of 3.7 percent in September, up from 3.4 percent in August. Persistent inflation compelled Federal Reserve officials to raise interest rates last month for the first time since the summer of 2023. The CME FedWatch tool showed traders pricing in a roughly 83 percent chance that the Federal Reserve will hold rates steady at next week's meeting. Freddie Mac put the average 30-year mortgage rate at 7.4 percent, a nearly four-year high.
Hassett echoed President Trump's positive view of the economy on Monday as midterm early voting was underway. Hassett said the country has high growth and the lowest unemployment insurance claims since World War II. Hassett argued that September's inflation increase was "hardly enough to overpower all the good news" for the economy.
Hassett Dismisses Negative Economic Polls, Calls U.S. Economy a Boom
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Hassett Dismisses Negative Economic Polls, Calls U.S. Economy a Boom Amid CFT Measures
National Economic Council director Kevin Hassett dismissed negative economic polling on Monday, calling the U.S. economy a boom. He pointed to $190.7 billion in increased consumer spending from July to August and unemployment below 5 percent as signs of strength. While consumer confidence fell, inflation rose to 3.7 percent in September, above the Fed's target. Hassett backed the Trump administration's stance as midterms start, with risk-on assets seeing inflows amid CFT efforts.
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