National Economic Council Director Kevin Hassett Reminds Us Strong Economic Fundamentals Trump Negative Media Hype

White House National Economic Council Director Kevin Hassett was on Fox Business today and said he is expecting inflation to fall further by the end of the year as energy prices ease and economic growth continues to accelerate.

Speaking with Maria Bartiromo on “Mornings with Maria” discussing inflation, energy prices, artificial intelligence investment, Hassett said the broader outlook for the U.S. economy is good and will only get significantly better when the Strait of Hormuz reopens and oil is unleashed on the world.

Hassett said that core inflation is already near the Fed’s target. He predicted a sharp drop in overall inflation by year’s end, driven primarily by easing energy prices once disruptions in the Strait of Hormuz resolve.

He also highlighted falling Treasury yields, which indicate a decrease in the interest rates on U.S. government bonds, often reflecting lower inflation expectations and economic growth concerns,  as another positive signal.

Strong economic fundamentals consistently outweigh negative media narratives. Markets, businesses, and households respond to data like growth, jobs, inflation, productivity, and policy incentives—not headlines.

The reason we focus on economics is because media usually amplifies negativity for clicks and ratings, or anti-Trump agendas, but reality prevails through earnings, investment decisions, and spending.

Baron’s reported this morning:

Why does this matter?

“Core inflation is already just a smidge above target… top line inflation is going to go down as soon as we get the straits open,” Hassett said. “And it’s going to go down a lot.”

Elevated oil and gas prices responding to Middle East tensions, are a key pressure point for consumers and businesses, and the media is hammering this every chance they get.

Hassett said he is optimistic that oil prices will “plummet” with resumed flows from the region, which will result in fast relief at the pump and for broader economic costs.

Hassett defended the Trump tariffs, arguing the economy is absorbing higher costs without a major inflation spike. He pointed to strong consumer and corporate spending, a strong labor market with low unemployment claims, manufacturing investments, fueled by tax incentives like full expensing, and capital spending on factories and AI infrastructure.

Hassett forecasted robust growth, including around 4% for parts of the year, calling the U.S. “the hot place to be” for investment.

Here’s a snapshot: