White House Economic Adviser Says US Credit Card Spending Is 'Through the Roof'

Kevin Hassett, director of the White House National Economic Council, said credit card spending in the U.S. is "through the roof."

The statement highlights a tension between government optimism regarding consumer behavior and indicators of financial distress among specific populations. While the administration views spending as a sign of confidence, critics suggest it may indicate a reliance on debt to maintain living standards.

During an interview on Fox Business this week, Hassett said that the surge in credit card usage reflects a strong jobs outlook and high consumer confidence. He said, "Consumers are spending more on gas, but they are spending more on everything else too."

However, the director's optimism comes amid data showing that credit card delinquencies are rising. The administration's narrative of a thriving economy also contrasts with a sharp increase in agricultural failures. According to reports, farm bankruptcies have jumped 46% ^[1] compared with the prior period.

Despite these figures, Hassett said that the spending patterns are a positive indicator for the broader economy. He said that "spending is through the roof" as a metric of current economic activity.

The contradiction between high spending and rising defaults has drawn attention from analysts. Some observers argue that increased credit use does not necessarily mean Americans are better off, particularly when coupled with the rise in bankruptcy filings in the farming sector ^[1].