White House National Economic Council Director Kevin Hassett analyzes September CPI report, consumer spending and addresses negative views of the economy from voters in ‘Varney & Co.’
Americans continue to spend, but frustration over inflation and borrowing costs is clouding their view of the economy, a disconnect the White House says it is trying to understand.
White House National Economic Council Director Kevin Hassett joined FOX Business’ Stuart Varney on “Varney & Co.” to discuss why consumers remain nervous about the economy despite signs of continued spending and investment.
White House National Economic Council Director Kevin Hassett explains why Americans remain concerned about the economy despite signs of strong consumer spending and economic growth. (Al Drago/Bloomberg/Getty Images)
The tension comes as rising energy costs put renewed pressure on inflation.
The Bureau of Labor Statistics (BLS) said Wednesday that the consumer price index (CPI) — a broad measure of the cost of everyday goods like gasoline, groceries and rent — increased 0.6% on a monthly basis and 3.7% from a year ago.
Hassett attributed September’s disappointing inflation figures in part to attacks on energy infrastructure in the Middle East, while pointing to price stability in other categories.
CONSUMER INFLATION INCREASED FASTER THAN EXPECTED IN SEPTEMBER, CPI REPORT SHOWS
“But of course, there was a number on the top line that was disappointed. But inside the top line, there’s a lot of good news,” Hassett said.
Forbes Media President Steve Forbes discusses the Federal Reserve and the Middle East conflict. Forbes weighs in on negative real wages, saying lower taxes and a stable dollar will turn the negative into a positive.
Mortgage rates pose another challenge for households. Hassett said stronger income growth and lower inflation could ultimately improve affordability, but cautioned against drawing conclusions from just one month of data.
SOCIAL SECURITY ANNOUNCES COST OF LIVING ADJUSTMENT FOR 2027
“We really need to wait until next month before we decide whether it’s appropriate for the Fed to do something about this,” he said.
Unleash Prosperity co-founder Steve Moore joins “Mornings with FOX Business” to discuss the state of the U.S. economy, highlights strong investment numbers and argues the U.S. is outperforming other countries economically.
Despite these concerns, Hassett pointed to strength in capital spending, factory construction and consumer demand. He said bank executives told him that customers continue to make purchases rather than fall behind on their payments.
TRUMP ENERGY CHIEF SAYS TRUCKS COULD BENEFIT FROM DIESEL A FEW DAYS AFTER EXECUTIVE ORDER
“It’s a puzzle that we ourselves think about every day, because if you look at the overall data, you have a capital spending boom like we’ve never seen,” Hassett said of the gap between economic activity and public opinion.
Jackie DeAngelis examines trends in the U.S. economy, highlighting 78 consecutive months of economic growth and low unemployment. Although President Donald Trump has touted the positive data, rising costs continue to weigh on consumer spending.
He argued that concerns over job security can weigh heavily on consumer confidence, even if overall spending remains resilient. Hassett also predicted a strong holiday shopping period, suggesting that Americans’ spending habits may paint a more optimistic picture than their view of the economy.
“My view is that the strength of the economy is visible,” he said.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Eric Revell of FOX Business contributed to this report
Gn bussni
