White House National Economic Council Director Kevin Hassett's Fox Business interview is peak administration spin: "Credit card spending is through the roof... they're spending more on gasoline and everything else!" delivered with that smug grin, of course.
Hassett thinks maxed-out cards signal booming confidence instead of households leaning on plastic to cover higher prices for basics. He was so close to acknowledging the obvious pressure on consumers (rising costs forcing more borrowing). Still, he landed on a sunny interpretation instead, even as Americans struggle in an unaffordable economy.
"In fact, I had the head of one of the big five banks in my office yesterday going through the credit card data, and just as Secretary Besant said, credit card spending is through the roof," Hassett said before putting a sunshine-y spin on it.
"They're spending more on gasoline, but they're spending more on everything else, too," he continued. "And so in terms of the jobs picture for the rest of the year, you know, it's really hard to see having the unemployment rate go up, for example. "It's probably going to drop a little bit, but it's already very close to full employment."
Inflation and real wage dynamics have been debated this term; the rise in credit card debt alongside nominal spending isn't shocking in an inflationary economy. It's all so typical of another millionaire like Hassett in Trump's administration, whose every need is met tenfold, telling struggling Americans that using credit cards for skyrocketing gas prices is actually a good thing.
