Is Fox News turning on Trump? Seems like it.
Questions about the strength of the U.S. economy resurfaced this week after the latest GDP report came in below expectations, prompting one of President Donald Trump’s top economic advisers to offer an explanation that quickly sparked debate.
National Economic Council Director Kevin Hassett defended the administration’s economic record during a Friday appearance on Fox Business’ “Mornings with Maria,” arguing that the slower headline growth number does not reflect weakness in the underlying economy.
Kevin Hassett Explains Lower GDP Growth
Fox Business host Maria Bartiromo noted that Hassett had previously predicted the U.S. economy could grow around 4% during the second half of the year. However, the latest government report showed GDP expanded at just 1.5%, well below many forecasts.
When asked about the gap, Hassett argued that the headline number failed to capture what was happening beneath the surface.
According to Hassett, domestic demand remained exceptionally strong, with final sales growing at roughly 3.9%, close to the forecast he had discussed earlier.
He said the weaker GDP figure was largely the result of a sharp increase in imports of machinery and industrial equipment needed to support a surge in factory construction across the United States.
Manufacturing Investment Takes Center Stage
Hassett argued that businesses are investing heavily in expanding American manufacturing capacity.
While increased imports can temporarily reduce GDP calculations, he said those purchases represent long-term investments that could strengthen domestic production and improve economic growth in the future.
He also suggested that rising capital investment could help ease inflation by increasing the nation’s productive capacity and expanding the supply of goods.
Inflation Data Remains Encouraging
The Trump economic adviser pointed to recent inflation reports as another reason for optimism.
According to Hassett, both the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) inflation reports showed encouraging progress.
He argued those figures are consistent with the type of inflation data Federal Reserve officials have been hoping to see as policymakers continue evaluating future interest rate decisions.
Labor Market Continues Showing Strength
Hassett also highlighted the labor market, saying unemployment benefit claims remain near historic lows.
He noted that new jobless claims are at levels not seen since the 1960s, despite today’s labor force being substantially larger than it was decades ago.
In his view, strong hiring, resilient consumer demand, expanding business investment, and moderating inflation all point to an economy that continues to perform well despite concerns raised by the latest GDP report.
Hassett Continues Defending Trump’s Economic Agenda
The interview is the latest in a series of television appearances where Hassett has defended President Trump’s economic policies.
In recent months, he has argued that geopolitical instability has affected global energy markets, maintained confidence that gasoline prices can move lower over time, and repeatedly stated that he believes the overall U.S. economy remains fundamentally strong.
The latest GDP report is expected to fuel continued debate among economists, lawmakers, and investors over whether the slower growth rate represents a temporary slowdown or the short-term impact of heavy business investment that could support stronger economic performance in the years ahead.
Leave a Reply