Kevin Hassett, a senior economic adviser to President Donald Trump, said Wednesday that credit-card spending in the U.S. is "through the roof" [1, 2].
The statement comes as the administration seeks to project confidence in the national economy. The outlook for the job market remains a primary focus for the White House as it navigates price hikes linked to the Iran war [1].
Hassett based his assessment on a meeting with a representative from one of the five largest banks in the country. The adviser said the data provided by the bank suggests a high level of consumer activity [1].
"I had the head of one of the big five banks in my office yesterday going through credit card data … and credit card spending is through the roof," Hassett said [1].
Hassett said this surge in spending is evidence that the U.S. job market is very strong [1]. He said the willingness of consumers to spend indicates a positive trajectory for employment and economic stability, a narrative the administration is using to counter concerns over rising costs [1].
However, the interpretation of this data is a point of contention among economists. While the administration views the spending as a sign of confidence, other analysts said high credit-card usage can be a warning sign. Some said such a surge may indicate that consumers are under financial strain and are relying on debt to maintain their standard of living, rather than relying on increased income [2].
“"Credit card spending is through the roof."”
The disagreement over credit-card data highlights a fundamental tension in economic signaling. The administration is interpreting high consumption as a proxy for job security and consumer confidence. Conversely, critics view the same data as a sign of increasing household debt, suggesting that the 'strong' spending is a result of necessity or borrowing rather than genuine wealth accumulation.
