Kevin Hassett Discusses Holiday Spending and Economic Outlook

The Director of the White House National Economic Council, Kevin Hassett, provided insights into the holiday shopping season and the current economic landscape during his interview on “Face the Nation” with Nancy Cordes on November 30, 2025. Hassett emphasized a robust spending outlook despite some concerns regarding inflation and consumer sentiment.

During the discussion, Cordes highlighted surveys from Goldman Sachs and Bank of America, indicating a cautious holiday spending forecast, particularly among low and middle-income Americans. These reports suggested that rising prices might lead to reduced expenditures this season. Hassett countered this assessment by referencing initial data from Black Friday and subsequent sales, which showed an increase of nearly 10% in online sales and a 4% rise in in-store purchases.

Hassett attributed this positive spending trend to several factors, including improved wages and a strong jobs report. “Incomes are up this year,” he noted. He suggested that the economic recovery was aided by pent-up demand resulting from previous government shutdowns, leading to a stronger than anticipated shopping weekend.

As the conversation shifted to inflation, Cordes raised concerns about rising prices for certain goods, citing that the price of a toy truck had increased from $30 to $40. Hassett acknowledged the variability in prices across different sectors but emphasized that overall wage growth had outpaced inflation, resulting in an average increase of $1,200 in real incomes for consumers this year.

Polls indicate a growing skepticism among the public regarding President Trump’s economic policies. A recent CBS News poll revealed that 68% of Americans believe grocery prices are being driven up by these policies, with an increase of 1.4% in grocery prices year-to-date. Cordes questioned how Hassett reconciled this public sentiment with the data he presented.

Hassett responded by asserting that even with a 1.4% increase, grocery inflation remains low compared to the Federal Reserve’s target of 2%. He expressed optimism about upcoming tax cuts, which he believes will bolster consumer spending and provide taxpayers with substantial refunds.

The conversation also touched on the potential impact of the expiration of Obamacare premium subsidies on purchasing power for millions of Americans. Hassett discussed a recent proposal regarding these subsidies, which was briefly floated before being withdrawn. He suggested that the White House was formulating a solution alongside Democratic leaders, aiming to address concerns without causing widespread panic among those reliant on the Affordable Care Act.

Towards the end of the interview, Cordes addressed reports regarding Hassett’s possible candidacy to succeed Jay Powell as Chair of the Federal Reserve. While responding to the speculation, Hassett expressed gratitude for being considered among strong candidates. He emphasized that President Trump would select a successor likely to focus on reducing borrowing costs, thereby facilitating easier access to mortgages and loans.

In conclusion, Hassett conveyed a sense of optimism about the economy’s direction, suggesting that the positive indicators around Thanksgiving could herald a stronger economic performance in the coming months. The interview underscored the complexities of consumer sentiment amid fluctuating prices and the administration’s ongoing commitment to addressing economic challenges.