NEC's Hassett Sees Fed Acting If October Inflation Data High

Recent economic data, particularly the 0.5% rise in September PCE, sparks debate over whether inflation remains a persistent threat or a temporary fluctuation. Kevin Hassett maintains that strong capital spending and a trillion-dollar increase in real consumption since the start of the current administration signal economic resilience, dismissing concerns about affordability as disconnected from aggregate data. While acknowledging energy prices as a primary driver of short-term volatility, Hassett expresses confidence that inflation will stabilize near the Federal Reserve’s target. The conversation also addresses the White House’s ongoing, formal review of Governor Lisa Cook’s tenure at the Federal Reserve. Hassett defends the integrity of this commission, asserting that the process remains data-driven and collegial, even as the administration faces scrutiny over its potential influence on monetary policy independence and the Fed's institutional autonomy.