Hassett calls the economy a boom while conceding that September inflation needs work

Kevin Hassett, director of the National Economic Council, dismissed polls critical of the Trump administration’s handling of the economy on Monday, arguing that the US economy is in a boom^1,2. He argued that the “true sentiment” of the economy is “best measured by what you see” Americans doing⁷.

In a CNBC interview on 19 October, Hassett acknowledged that inflation challenges persist despite some price declines³. He said inflation looks like “it is needing some work”¹⁰, and Hellenic Shipping News reported that he said inflation requires policy attention after the September consumer price data⁶. Hassett pointed to falling beef and egg prices but still said September inflation needs attention⁴. TradingKey summarised his remarks as saying the inflation rebound warrants attention and that more data are needed to assess the cooling trend⁸.

The Wealth Advisor described the remarks as an acknowledgement that inflation may be moving in the wrong direction again, just days after the consumer price report⁵. Mysteel reported that Hassett said the latest CPI data show inflation remains a concern¹¹.

Why it matters to investors

The data behind the remarks are stark. Interactive Brokers reported that headline CPI rose 0.6% in September from August, the largest monthly increase since April, pushing the annual rate to 3.7%¹². It said the rise was driven primarily by a further acceleration in energy prices¹².

Treasury Secretary Scott Bessent has linked September inflation to an “energy shock”¹³. Not everyone accepts the administration’s account: TheStreet reported that the chief executive of Chevron disagreed with Bessent’s take on the economy, and wrote that his “Meet the Press” comments seemed disconnected from what most Americans face¹⁴.

Markets read the inflation story through yields. FXStreet reported that gold sagged near $4150 as oil fuelled a rebound in US yields, and noted Hassett’s comment in the same report¹⁰. Stocks were less concerned on the day: the Nasdaq rose 1.1% as tech shares rebounded, led by memory-chip makers⁸.

What to watch

Hassett’s two messages pull in different directions. The claim of a boom is an administration assessment, and the polls he dismissed say voters see it otherwise¹. His concession on prices matches the CPI numbers^6,12.

The next tests are further price data and how the Federal Reserve weighs an energy-driven rise in inflation that the White House itself now says needs work^8,10.