Trump’s Econ Goon Lets Slip That President Is Fed Flattering Numbers

National Economic Council director Kevin Hassett defended President Trump’s recent claim that “prices are coming down tremendously” on CBS’ Face the Nation, saying the president focuses on metrics that show progress; host Margaret Brennan pushed back, noting the consumer price index is up 3% year‑over‑year and the personal consumption expenditures index is up 2.8%. Hassett pointed to select improvements — prescription drug costs are down 0.6% this year after a 9% rise under Biden and gasoline and some food items have fallen — prompting critics to accuse the administration of cherry‑picking favorable data. The exchange, amplified by social‑media commentary and Trump’s self‑awarded A++++ economic grade in a separate Politico interview, highlights tensions over the accuracy and completeness of the administration’s public inflation narrative.

Analysis

Kevin Hassett defended President Trump’s claim that "prices are coming down tremendously" on CBS’ Face the Nation by saying the president focuses on metrics that "show progress." Margaret Brennan pushed back with aggregate measures, noting the consumer price index is up 3% year‑over‑year and the personal consumption expenditures index has risen 2.8%, highlighting a gap between the administration’s messaging and broad inflation data. The discussion centers on selective, item‑level improvements rather than aggregate trends.

Hassett pointed to examples he says validate the claim: prescription drugs rose 9% under the prior administration and are down 0.6% so far this year, and he referenced lower gasoline and certain food prices. The article records social‑media criticism alleging cherry‑picking and notes Trump’s separate A++++ self‑assessment, which together amplify concerns about credibility and narrative control.

Signal outputs show moderately negative sentiment (−0.45) and limited market impact (0.12), implying this rhetoric alone is unlikely to move markets materially without confirming macro data. For investors, the practical implication is to rely on headline CPI/PCE trajectories and item‑level releases for positioning while recognizing elevated political and headline risk for consumer‑facing and interest‑sensitive assets.

Key Decisions for Investors

• Prioritize positioning based on official inflation prints (CPI +3% YoY, PCE +2.8%) rather than political statements; avoid adding duration until clear, sustained disinflation appears
• Consider tactical, hedged exposure to consumer names if selective price declines (prescription drugs -0.6% YTD, gasoline down) persist, but keep sizes modest given credibility and messaging risk
• Monitor upcoming CPI/PCE releases and political events for headline-driven volatility and use options or increased cash buffers to manage short-term risk