The next is the transcript of the interview with Kevin Hassett, Nationwide Financial Council director, that aired on “Face the Country with Margaret Brennan” on Nov. 9, 2025.
MARGARET BRENNAN: We commence this morning with the Director of the White Space Nationwide Financial Council, Kevin Hassett. That is now the longest shutdown in American historical past. The treasury secretary instructed us two weeks in the past November 15 used to be the laborious prevent for any paychecks going to US troops. Does that stay the purpose of exhaustion?
KEVIN HASSETT, DIRECTOR, NATIONAL ECONOMIC COUNCIL: Proper, I believe that- that is about the correct quantity. And the issue is that underneath the regulation, we are not allowed to spend cash that hasn’t been appropriated. And there’s a regulation, the Antideficiency Act, that claims that if a central authority authentic spends cash that is not appropriated by way of Congress, which is able to best occur if the Democrats vote to open up the federal government, then it’s essential also have felony consequences. And so persons are very moderately learning the regulation and seeking to get as a lot cash out the door as is felony. And we are very satisfied that we discovered a technique to get numerous the SNAP cash out, yet it is in point of fact pushing the limits of the regulation, which is why the Splendid Court docket needed to take that ruling from Rhode Island and put it on grasp.
MARGARET BRENNAN: Till the decrease court docket rules–
HASSETT: Till the decrease court docket is going again and springs up with a felony justification for what they mentioned, as a result of there most probably is not one, unfortunately, which is why we need to get this govt open. I imply, the reality is Goldman Sachs, they’ve a most sensible financial workforce, and they are estimating that we now have already knocked about 1.5% off of GDP. I believe that quantity is most probably low if we stay going even a pair extra weeks, as a result of there may be going to be an enormous quantity of air disruption, particularly across the vacations. And the sort of issues every so often after we’re speaking economics, you and I, we discuss seasonal changes and such things as that. However the truth is that Thanksgiving, that Thanksgiving time, is certainly one of the freshest instances of the 12 months for the financial system. It is Black Friday, you recognize, and all that roughly stuff. And if other people are not touring at that second, then we in point of fact might be having a look at a unfavorable quarter for the fourth quarter.
MARGARET BRENNAN: Which is considerably disruptive to the president’s time table. However to the purpose you have been simply making about meals stamps, and we noticed this Friday, a brief keep by way of the Splendid Court docket that might block complete meals stamp advantages pending the decrease court docket determination. The management’s argument, as you simply referenced there, used to be that it could be unlawful to transport round investment and to faucet the Phase 32 account on the USDA. However why now not do that as a brief time period patchwork resolution? As a result of you could have discovered tactics with the army pay to stretch issues out. Why prioritize if that’s the case and now not accomplish that with meals?
HASSETT: Smartly, the president’s activity, and all of our jobs, is to uphold the regulation. And when- I am not a legal professional, but if the legal professionals inform us–
[CROSSTALK STARTS]
MARGARET BRENNAN: However are–
HASSETT: what we will do–
MARGARET BRENNAN: — that wasn’t achieved with the army.
HASSETT: However, yet, yet yeah, I believe that the army is other as a result of the commander-in-chief stuff. However the felony research means that we are doing the whole lot by way of the e book, after which stretching issues up to we will, and principally seeking to stay other people from committing crimes. Which you recognize, you recognize about- within the season of lawfare, if you’re a cupboard secretary and also you spend cash that is not appropriated for that function on your cupboard, then they may be able to come again and they may be able to take you to court docket.
MARGARET BRENNAN: However you might be additionally creating a political guess that Democrats are not going to problem paying the army. Do you in point of fact assume Democrats would problem and take to court docket paying other people for his or her meals stamp advantages?
HASSETT: Let’s simply say that we now have noticed Democrats–
MARGARET BRENNAN: –if, if Congress goes to fund it, when the shut- shutdown ends?
HASSETT: We- we now have noticed Democrats take to court docket other people that- on in point of fact, in point of fact deficient fees, and so I believe they are more likely to do anything else.
MARGARET BRENNAN: Smartly, it kind of feels a political calculation is the purpose.
HASSETT: Smartly, we, we should not have a political calculation. Our calculation is to get the federal government open, to get the meals stamps to other people, and to get other people to be paid, 750,000 govt staff are not getting paid at the moment. I do know you might be speaking to the Governor of Maryland in a minute. I am certain his persons are in point of fact hurting. Let’s simply get the federal government open, after which let’s discuss such things as the healthcare premiums, yet do this thru common order.
MARGARET BRENNAN: So, it seems like you might be announcing the placement is identical, open the federal government, then we’re going to discuss healthcare. However the president, simply previously 36 hours, has put out plenty of social media posts. It sounds kind of like he is proposing one thing in regard to medical health insurance bills. He mentioned, I am recommended- to Senate Republicans that masses of billions of greenbacks lately being despatched to money-sucking insurance coverage corporations to avoid wasting unhealthy healthcare supplied by way of Obamacare now be despatched to the folk so they may be able to acquire their very own significantly better healthcare. He additionally mentioned they will have to terminate Obamacare. What does this choice machine appear to be? As a result of all the standoff is ready healthcare at the moment.
HASSETT: Proper. Smartly, the president is, you recognize, a gorgeous tactician, a gorgeous negotiator–
MARGARET BRENNAN: That is an off–
HASSETT: –And this is- you recognize, what he mentioned, he is brainstorming and seeking to assist the Senate get a hold of a deal that may get the federal government open. And one of the crucial issues it’s essential do is conservatives consider that they do not want the federal government to micromanage other people’s lives. And you recognize, everyone believes that folks will have to have healthcare, and so why now not take the individuals who have upper healthcare premiums and simply mail them a take a look at and allow them to make a decision? The explanation why it would have an impact is that there are more than one tiers underneath the Reasonably priced Care Act of several types of insurance coverage, and it might be that folks would relatively have the cash and move from like, you recognize, this sort of plan to that roughly plan and save themselves just a little bit. And in order that’s, that is, you recognize, principally giving the folk a possibility to make extra alternatives than the federal government generally permits them to.
MARGARET BRENNAN: Is that this the Senator Cassidy proposal?
HASSETT: I am certain that Senator Cassidy and President Trump mentioned it, yet whether or not he is of the same opinion with the whole lot that Cassidy- I have not talked to him about it but.
MARGARET BRENNAN: Smartly, does the Republican chief within the Senate accept–
HASSETT: –The president–
MARGARET BRENNAN: –this proposal?–
HASSETT: — the president began this concept the previous day, I do not believe that it is been mentioned broadly within the Senate but.
MARGARET BRENNAN: So the president–
HASSETT: It is the weekend.
MARGARET BRENNAN: –The Senate’s in consultation this weekend–
HASSETT: –Sure, the Senate is in consultation this weekend and we are–
MARGARET BRENNAN: as a result of they are seeking to finish the shutdown–
HASSETT: –And right here I’m.
MARGARET BRENNAN: However this isn’t the Republican Celebration’s place.
HASSETT: As of at the moment, it isn’t the Senate place, however the president idea it used to be one thing they will have to take into accounts.
MARGARET BRENNAN: Smartly, he appears to be negotiating prior to the federal government’s open.
HASSETT: He is speaking to his colleagues within the Senate at the Republican aspect.
MARGARET BRENNAN: However you may agree that there does wish to be a deal on healthcare, that healthcare prices are too prime.
HASSETT: Smartly, I believe that for those who have a look at the Reasonably priced Care Act, those premiums were not made everlasting by way of the Democrats all the way through the COVID emergency as a result of they are fearful in regards to the budgetary prices. And so for those who have a look at the top class will increase, they do not impact most of the people underneath two instances the poverty line, thrice the poverty line. However there are numerous senior voters which are above, like, round 4 instances the poverty stage, which with a husband and spouse workforce could be about 120,000, which are seeing in point of fact large top class will increase. And I believe that everyone’s going to need to take into accounts what the next move for that might be, as a result of are seeing- once more most of the people are not seeing a lot of an build up in any respect, however the most will increase you might be seeing might be as much as about $500 a month for seniors who’ve in point of fact pricey plans.
MARGARET BRENNAN: The president has additionally been speaking about affordability, and our CBS polling presentations the president’s approval score at the financial system has dipped to 38%, the bottom of this time period. 75% of the ones polled say he is not focusing sufficient on decreasing expenses, however the president mentioned this week Democrats are making it up and quote, “each and every worth is down.” I am certain you recognize the Shopper Worth Index confirmed grocery expenses are up just about 3%, in September from a 12 months in the past.
HASSETT: –well–
MARGARET BRENNAN: –Do you dispute that?
HASSETT: Smartly, in fact, let’s move during the details, proper? Inflation went up about 5% underneath President Biden. In President Trump’s first 8 or 9 months, relying the place we get the final quantity, it is up 2.7%. One of the vital large issues that is hurting affordability is mortgages. The rate of interest went up by way of about 4%.
MARGARET BRENNAN: That is grocery prices–
HASSETT: –No, grocery expenses are in fact down considerably underneath Trump. However here is the thing–
MARGARET BRENNAN: –but relies on which–
HASSETT: Let me– I’m going to simply make some extent.
MARGARET BRENNAN: K.
HASSETT: That for those who have a look at the actual aid in spending energy for American citizens underneath Joe Biden, then it went down about $3,000 as a result of we had as much as 9% inflation, after which they went to the grocer, they could not purchase the issues they are used to shopping for. The true spending energy, adjusted for inflation, underneath President Trump has long past up about $1,200 up to now this 12 months. $1,200 isn’t $3,000, and so persons are proper to really feel stretched, yet we are making growth. And for those who have a look at the entire sure issues in regards to the financial system, commercial manufacturing on the subject of at an all time prime, capital spending about at an all time prime, GDP enlargement at the moment about 4%, then that presentations that the source of revenue enlargement that we wish to get extra affordability is at the trail to going down. And the hot button is that the final Shopper Worth Index stunned down. It used to be less than anticipated, and it could were even decrease as a result of there used to be a refinery shutdown that led to it to head rather upper. So we see inflation underneath keep an eye on and the financial system booming, yet we perceive 100% why persons are nonetheless hurting, as a result of we have not made up the entire room that used to be misplaced underneath Joe Biden.
MARGARET BRENNAN: So are you ok with 3% inflation?
HASSETT: I am ok with 2% inflation.
MARGARET BRENNAN: So no, you might be now not glad the place issues at the moment are.
HASSETT: Smartly, they were given to head down just a little bit extra, yet there- however the level is that inflation is just like the Queen Mary, my pal Alan Greenspan used to mention, so while you move from nearly 4% that we had in January all the way down to the mid twos, then that is a trajectory that generally has momentum.
MARGARET BRENNAN: So the St. Louis Fed discovered price lists account for part a proportion level of the yearly inflation price. How a lot do you assume the price lists are mountaineering expenses?
HASSETT: , there may be a few papers in the market that say that expenses went up by way of between two tenths and 5 tenths. And the object to keep in mind, if the ones papers are true, is that that is a degree regulate, since the tariff is going in, after which the tariff is solely there, so it does not impact inflation one day. It will be a one time stage regulate. Our estimates at CEA are a lot nearer to 0, and it is all in line with modeling and assumptions about elasticities and issues. However for essentially the most section, the only manner you’ll be able to see it’s it’s essential have a look at the cost of imported items, and the cost of imported items, CEA put a record out, has in fact been declining underneath price lists. As a result of what occurs is that the Chinese language need to promote us quite a lot of stuff, and there is a tariff, in order that they reduce their expenses in order that they may be able to nonetheless have a bigger marketplace proportion in the USA.
MARGARET BRENNAN: Kevin Hassett, all the time excellent to have you ever right here. After all, we need to depart it there for now. We’re going to be proper again in a minute. Stick with us.
