Hassett Defends Economy After 0.6% CPI Rise as Inflation and Borrowing Costs Sour Mood
Updated
Updated · Fox Business · Oct 14
Hassett Defends Economy After 0.6% CPI Rise as Inflation and Borrowing Costs Sour Mood
3 articles · Updated · Fox Business · Oct 14
Summary
September CPI rose 0.6% from August and 3.7% from a year earlier, prompting Kevin Hassett to explain why voters still feel negative despite solid spending and investment.
Hassett blamed much of the inflation disappointment on higher energy costs tied to attacks on Middle East infrastructure, while arguing other price categories showed more stability beneath the headline number.
Mortgage rates and borrowing costs are still straining households, and Hassett said the White House needs another month of data before judging whether the Federal Reserve should respond.
Bank executives have told Hassett consumers are still making purchases rather than missing payments, and he pointed to strong capital spending, factory construction and a potentially robust holiday shopping season.
The gap between resilient economic activity and weak public sentiment remains a political and economic challenge for the White House, especially as worries about job security and living costs linger.