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Hassett Links Deficit, Trade Gap Declines to Inflation Progress as CEOs Warn on Hiring

The NEC director used a TV interview to argue policy gains are cooling prices despite inflation readings still above 2%.

Overview

  • On Face the Nation, Kevin Hassett said the federal deficit is on track to be about $600 billion lower than last year and the trade deficit has been cut in half.
  • Hassett argued those shifts should help move inflation toward the Federal Reserve’s 2% goal.
  • President Donald Trump said prices are coming down tremendously, while the latest readings show CPI up 3% year over year and PCE up 2.8%, according to Margaret Brennan.
  • Hassett cited item-level improvements, noting prescription drug prices are down 0.6% so far this year after rising 9% under Joe Biden.
  • A Business Roundtable survey reports CEOs expect lower employment in 2026, and Hassett said the upcoming November household employment survey will be critical for reading the jobs market.