Kevin Hassett Frames Rising Consumer Spending as Optimism Amid Inflation and Credit-Card Delinquency

During a Fox News Sunday interview, Kevin Hassett, director of the National Economic Council, said that higher spending on gasoline, groceries and restaurants indicates that Americans are optimistic about the future and not worried about job loss.

Mediaite

The war with Iran that began on Feb. 28 has constrained oil flow through the Strait of Hormuz, pushing the national average gasoline price above $4.50 per gallon and above $5 in states such as California.

Daily Beast

The top 10 % of earners drove most of last year’s consumer spending, while the bottom half own about 1 % of public equities (St. Louis Fed). Inflation outpaces wage growth, savings rates have halved, and credit-card balances 90-day delinquency rose 13.12 % in Q1—the highest in 15 years. A Politico poll shows 53 % of Americans rate the cost of living as the worst they can remember.

Mother Jones

Hassett dismissed the University of Michigan survey as partisan and said credit-card companies face “no financial threat” despite “increased stress.” Trump called the affordability crisis a “hoax” and said gas prices will soon return to previous levels, expressing confidence in a forthcoming resolution to the Iran conflict.

Daily Beast

Economists cite rising credit-card delinquency and stagnant real incomes as evidence of financial strain, contradicting Hassett’s optimism. Agricultural professor Ricky Volpe warned food affordability will worsen. Polls cited by Shannon Bream show growing public concern.

Mediaite

While Hassett interprets higher spending as optimism, University of Michigan and other sentiment surveys indicate growing consumer pessimism, creating a clear discrepancy between official narrative and public sentiment data.

Mediaite

• “People are spending more on gas, but they're also spending more on everything else — not just groceries, but restaurants and so on. I think that's a sign you see when people are optimistic about the future.” — Kevin Hassett, Director of the National Economic Council

Mother Jones

• “Part of his response to the Fox host’s question on credit card delinquency data seemed particularly telling as to the administration’s priorities: “We talk to the CEOs of the credit card companies all the time and we do see some increased stress,” he said, but “there’s not any kind of financial threat to the credit card companies.” — Kevin Hassett

Mother Jones

• “First of all the Michigan survey no longer has anything to do with the economy or economic sentiment, it’s just a place where Democrats get to register how angry they are at President Trump,” — Kevin Hassett

Mediaite

The White House says a diplomatic solution to the Iran conflict is forthcoming, with officials indicating they are close to reopening the Strait of Hormuz.

Daily Beast