Focus on the BIG picture.
Saturday, Dec 20, 2025
Outside the box.
White House Adviser Hassett Defends Trump’s Inflation View, Argues Data Show Price Growth Slower Than Reported
Kevin Hassett tells Fox Business that President Trump’s interpretation of inflation is supported by short-term measures, challenging conventional year-over-year metrics
White House economic adviser Kevin Hassett told Fox Business on Friday that President Donald Trump’s assessment of inflation is accurate when viewed through a shorter-term lens, even as traditional metrics and many economists paint a different picture.
Hassett argued that the common practice of analysing inflation on a year-over-year basis can overstate price pressures, and that a three-month moving average provides a clearer indication of underlying trends, showing inflation closer to the Federal Reserve’s two percent target.
Hassett’s comments came after the latest Consumer Price Index data showed a two point seven percent increase in prices in November compared with a year earlier, a moderation from previous months but still above the Fed’s target.
He said that when price changes are averaged over three months, the result is around one point six percent, a rate below the target and supportive of Trump’s assertion that inflation is no longer a pressing concern.
The adviser emphasised that this alternative approach better reflects recent developments and aligns with the president’s policy focus.
The remarks highlight a broader debate between the White House and parts of the Federal Reserve over the appropriate interpretation of inflation statistics.
Some central bank officials, including New York Federal Reserve President John Williams, have cautioned against too-rapid interest rate cuts given persistent inflation above target, and have suggested technical issues in data collection could cloud short-term measures.
Hassett responded by downplaying these concerns and asserting that further analysis will reinforce what he described as positive inflation dynamics.
The Fed has already eased monetary policy modestly, and the White House’s stance suggests support for additional rate cuts as price pressures ease under Trump’s economic strategy.
Hassett’s defence of the president’s inflation view underscores the administration’s broader narrative that Trump’s economic policies are producing tangible benefits for consumers and the wider economy.
By emphasising recent data showing decelerating price growth, the adviser seeks to bolster confidence among households and markets ahead of future monetary policy decisions and ongoing discussions about the leadership of the Federal Reserve.
Hassett argued that the common practice of analysing inflation on a year-over-year basis can overstate price pressures, and that a three-month moving average provides a clearer indication of underlying trends, showing inflation closer to the Federal Reserve’s two percent target.
Hassett’s comments came after the latest Consumer Price Index data showed a two point seven percent increase in prices in November compared with a year earlier, a moderation from previous months but still above the Fed’s target.
He said that when price changes are averaged over three months, the result is around one point six percent, a rate below the target and supportive of Trump’s assertion that inflation is no longer a pressing concern.
The adviser emphasised that this alternative approach better reflects recent developments and aligns with the president’s policy focus.
The remarks highlight a broader debate between the White House and parts of the Federal Reserve over the appropriate interpretation of inflation statistics.
Some central bank officials, including New York Federal Reserve President John Williams, have cautioned against too-rapid interest rate cuts given persistent inflation above target, and have suggested technical issues in data collection could cloud short-term measures.
Hassett responded by downplaying these concerns and asserting that further analysis will reinforce what he described as positive inflation dynamics.
The Fed has already eased monetary policy modestly, and the White House’s stance suggests support for additional rate cuts as price pressures ease under Trump’s economic strategy.
Hassett’s defence of the president’s inflation view underscores the administration’s broader narrative that Trump’s economic policies are producing tangible benefits for consumers and the wider economy.
By emphasising recent data showing decelerating price growth, the adviser seeks to bolster confidence among households and markets ahead of future monetary policy decisions and ongoing discussions about the leadership of the Federal Reserve.
