White House economic director downplays U.S. anxiety as gas prices

Kevin Hassett, director of the National Economic Council, told ABC’s “This Week” that real wages are increasing and that Americans will ultimately judge their economic situation by looking at their wallets, even as inflation and gas prices climb [1]. His comments come amid fresh data showing inflation at a three‑year high and a drop in consumer confidence.

Key takeaways

• Hassett said real incomes and wages are rising, citing a 3.6% annual wage gain versus 3.8% inflation in April [1].
• Gallup and University of Michigan surveys reported the lowest economic confidence since October 2022 and a record‑low consumer sentiment, respectively [1].
• The Bureau of Labor Statistics confirmed the wage‑inflation gap, while the Commerce Department’s PCE index showed inflation at 3.8% in April [3].
• Hassett dismissed Exxon Mobil’s warning of low oil inventories, asserting “billions” of barrels remain [1].
• Household saving rates fell to 2.6%, the lowest since June 2022, indicating financial strain [3].

Hassett’s optimistic framing amid rising prices

During the interview, Hassett highlighted that “real wages are going up” and argued that voters will consider their personal finances when casting ballots [1]. He pointed to the Bureau of Labor Statistics data showing a 3.6% year‑over‑year wage increase in April, which he said outpaces the 3.8% inflation rate for the same period [1]. While acknowledging that high energy prices are a “pinch,” he expressed confidence that the situation will improve once the Gulf conflict eases [1].

The director also countered Exxon Mobil senior vice‑president Neil Chapman’s claim that oil inventories are “really low.” Hassett said the administration tracks inventories daily and that “billions of barrels” remain, providing “plenty of runway” for the market [1].

Consumer sentiment and inflation data paint a bleaker picture

Independent surveys paint a different picture. Gallup’s latest poll recorded the lowest economic confidence since October 2022, and the University of Michigan’s consumer sentiment index fell for a third consecutive month, hitting a historic low and dropping 10% since April [1]. Meanwhile, the Commerce Department’s Personal Consumption Expenditures price index rose 0.4% in April, pushing the Fed’s preferred inflation gauge to 3.8% year‑over‑year—its highest in three years [3].

Economists note that while households have absorbed the fuel shock partly due to larger tax refunds, disposable income fell 0.1% in April and inflation‑adjusted disposable income dropped 0.5% [3]. The personal saving rate slipped to 2.6%, the lowest since mid‑2022, suggesting many Americans are spending beyond their means [3].

Why it matters

Hassett’s upbeat narrative contrasts sharply with survey data and macroeconomic indicators that show growing financial pressure on Americans. If voters perceive a disconnect between official messaging and their daily experience—especially regarding gasoline costs and inflation—political calculations could shift ahead of upcoming elections. The administration’s confidence in oil inventory levels also runs counter to industry warnings, highlighting uncertainty about how long the current price shock will last. Upcoming data releases on inflation and consumer spending will likely shape both policy responses and public sentiment in the weeks ahead.