National Economic Council Director Kevin Hassett addressed the balance between rising wages and inflation during an interview on “Fox News Sunday” with host Shannon Bream.
The conversation focused on conflicting economic indicators. According to the Bureau of Labor Statistics, the Consumer Price Index rose 3.8% year over year, with energy prices serving as the primary driver. Hassett highlighted specific sectors where he stated workers are seeing increased purchasing power.
“Look at real wage data: the typical American family has gained about $3,000 since President Trump took office after losing — after inflation — more than $3,000 under Joe Biden,” Hassett said. “And so we’ve got smoothing through the ups and downs, even with the higher price of energy. Real incomes on the rise and, for construction workers, for manufacturing workers, for mining workers, the numbers are really astonishing. For mining workers, their real incomes this year are up $7,000 per year.”
Bream questioned Hassett on how wage increases align with broader cost-of-living data. “OK, so you talk about growing wages, but the Bureau of Labor Statistics, according to their data— inflation is now 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 noted that different metrics include different variables, pointing to recent policy changes affecting public assistance.
“That’s a technical matter that it’s the personal income report that came out last week that said that it was slightly negative, but personal income includes lots of things like transfers and food stamps and things that we have been reducing as part of our effort to make government leaner and meaner, and so the best measure right now is to look at the wage data,” Hassett responded. “That’s by far the best measure, and the real wage data are showing big increases right now.”
Public sentiment tracks closely with these economic factors. A CBS News poll released May 17 indicated that more than three out of four respondents felt concerned about the economy, while two in three reported feeling stressed. In that poll, 65% described the economy as “uncertain,” 63% called it “struggling,” and 29% rated it as “good.”
Energy costs have seen substantial changes following the start of U.S. military strikes against Iran on February 28. While the administration has increased domestic fossil fuel production, prices at the pump remain higher than earlier in the year despite recent minor declines.
According to AAA data, the average price of a gallon of gasoline was $4.336 on Sunday. This is down nearly 18 cents from the prior week’s average of $4.515, but represents a $1.35 increase from the $2.98 average recorded on February 26.
Diesel fuel, which directly impacts the trucking and farming sectors, averaged $5.475 a gallon on Sunday. That price is down nearly 15 cents from the previous week’s average of $5.622, but is higher than the $3.66 average recorded on February 15.
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