The White House National Economic Council Director Kevin Hassett warned that inflation has not been fully controlled in recent years, and the general public still faces higher living costs. He also revealed that Congress may have room to consider tariff rebate checks in 2026.
During a panel discussion hosted by Bloomberg Economics Research on Wednesday (November 19), Hassett said that given the significant progress the Trump administration has made in reducing the national debt, Congress could consider incorporating relevant policies in the “Budget Reconciliation Act” of 2026.
“Considering the continuous influx of tariff revenue, which has not caused stagnation, I believe this is definitely worth considering,” he said, referring to the proposal to directly distribute $2,000 tariff rebate checks to the public. President Trump has been advocating for this proposal.
However, Hassett’s concerns about inflation have sparked even greater attention. He stated that the sustained pressure of rising consumer prices in recent years may not have been fully brought under control.
“During the recent period, we have not been able to contain inflation, although the situation has improved — but perhaps not fully under control yet,” he said.
Hassett mentioned that due to the wage growth rate failing to keep up with inflation, it has resulted in a decrease in Americans’ real income.
“People saying that the cost of living is too high have a point,” he said.
He also referred to Alan Greenspan, the former Federal Reserve Chairman, who had publicly criticized “reckless” fiscal spending in the past. Hassett explicitly stated that he also sees the danger of spending getting out of control, and pointed out that if Congress repeats past mistakes, “inflation will surely rise.”
When asked if he would do the same if he were to become the Federal Reserve Chairman, Hassett replied that he would not refer to inflation as “transitory.” He was referring to current Federal Reserve Chairman Jerome Powell, who downplayed inflation expectations during the price surge in 2021, calling inflation temporary.
Hassett mentioned that President Trump’s policies are currently driving an increase in real wages, but if Congress relaxes fiscal spending too much, the risks remain high. Meanwhile, federal budget data shows that the U.S. debt is still on the rise.
As of September of this fiscal year, the U.S. government’s fiscal deficit was $1.78 trillion, almost unchanged compared to the expected $1.82 trillion in 2024.