National Economic Council (NEC) Director Kevin Hassett joined Fox News’ “America’s Newsroom” to outline the Trump administration’s economic agenda, providing insight into the ongoing “affordability push,” the lasting impact of the government shutdown, and key policy considerations for housing and interest rates.
Hassett defended the administration’s progress on lowering the cost of living against political criticism. He argued that while the previous administration saw the “typical American family lost $3,400 worth of their purchasing power” over four years, people have already “gained about $1,200 of it back” in the Trump administration’s first few months.
He pointed to grocery price inflation as a key area of concern inherited by the administration, noting that a typical grocery bag that cost $400 under the prior Trump administration now costs almost $525 following Biden’s admin.
Hassett expressed confidence that the administration is “making up progress fast” to fill the “deep hole that Biden’s policies dug.”
To tackle the “crisis in first-time home buying,” Hassett confirmed that the administration is studying a suite of housing policies, including the option of a 50-year mortgage.
He detailed the trade-offs of the extended-term loan:
- Benefit: It would “really lower the monthly payment,” making homeownership more accessible for younger people.
- Risk: It would take longer “to build equity in the home,” meaning the policy “needs to be studied carefully.”
Addressing the economic fallout from the recent government shutdown, Hassett confirmed a substantial, potentially permanent impact on official economic reporting and the broader economy.
The shutdown’s effect on data collection includes:
- Missing Unemployment Data: The household survey for October, which calculates the unemployment rate, was not conducted. Hassett stated that the government will likely “never actually know for sure what the unemployment rate was in October.”
- Jobs Data Available: The payroll survey for jobs can still be filed retroactively.
The financial damage is projected to be significant, with the Council of Economic Advisers (CEA) guesstimating that the shutdown costs “about 15 billion a week.” Hassett estimated a loss of approximately 60,000 American jobs outside of government, leading to a projected 1.5% lower GDP for the fourth quarter than it would have otherwise been.
Despite the negative economic shock from the shutdown, Hassett expressed a bullish outlook on inflation. He argued that the latest data shows inflation’s momentum is “headed right towards two” percent.
Hassett explicitly stated he supports a quarter-point rate cut at the next Federal Reserve meeting. He noted that the most recent Consumer Price Index (CPI) report was surprisingly low, and the shutdown itself “slows the economy a little bit which takes a little bit of the heat off,” concluding there is “very much of an argument at all to not cut rates at the next” meeting.
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