Kevin Hassett, Director of the National Economic Council, said Monday that inflation is decreasing at the micro-economic level during a televised interview.
The statement comes as the administration seeks to defend President Donald Trump’s economic record regarding price stability and the impact of Federal Reserve policies. Because inflation remains a central point of political and economic contention, the accuracy of such claims often influences market sentiment and public perception of government efficacy.
Speaking on CNBC’s “Squawk Box,” Hassett discussed a range of economic topics, including corporate earnings, the role of the Federal Reserve, and the influence of artificial intelligence on the economy [2]. During the segment, Hassett said inflation is “way down” [1].
Hassett used the appearance to frame the current economic trajectory as a success for the administration's policies. He focused specifically on the micro-economic level to argue that the cost of goods, and services is stabilizing for individual consumers and businesses [2].
However, the assertion that inflation has dropped significantly has met with immediate pushback. Some reports indicate that reporters and fact-checkers challenged the validity of the claim during and after the broadcast, suggesting the description of inflation as being “way down” does not align with available economic data [3].
This disagreement highlights a recurring tension between official White House narratives and independent economic analysis. While the NEC Director pointed to specific micro-economic indicators, critics said the broader inflationary trend remains a persistent issue for the U.S. economy [3].
Hassett has also been linked in recent reports to potential future roles within the Federal Reserve, making his public commentary on monetary policy and inflation particularly significant for financial markets [4].
“inflation is ‘way down’”
The clash between Hassett's claims and the subsequent corrections underscores the difficulty of quantifying 'micro-economic' inflation versus aggregate data. By shifting the conversation to the micro level, the administration attempts to highlight specific areas of success, but this approach risks credibility when those claims conflict with the broader consumer price indices used by the Federal Reserve and independent economists.
