Overview
- Kevin Hassett, director of the White House National Economic Council, said private credit‑card and other proprietary data show Americans are “spending more on everything” and pointed to GDP he described as north of 4 percent.
- Hassett told Fox Business on Tuesday that the University of Michigan’s consumer‑sentiment survey is effectively political and urged reliance on alternate measures such as the Conference Board’s confidence index.
- Official indicators contradict Hassett’s upbeat frame: the University of Michigan sentiment index hit a record low of 44.8 in May and the Conference Board reported a 0.7 percent drop in consumer confidence, with its chief economist citing inflationary effects of the Iran war.
- Commentators and social media users sharply criticized Hassett’s remarks, noting that rising nominal credit‑card spending can reflect higher prices or borrowing rather than improved household finances and that gains in GDP and markets have not reached many households.
- The episode deepens a political and communication risk for the White House by underscoring a gap between headline macro data and everyday costs faced by consumers, a gap that could influence public opinion as inflation and fuel prices evolve.