Hassett sees CPI data as proof of Trump’s economic policy success

Kevin Hassett, director of the White House National Economic Council, expressed optimism over recent Consumer Price Index (CPI) data, suggesting it indicates the effectiveness of President Trump’s economic policies. This comes amid a backdrop of rising inflation, with the CPI report indicating a year-over-year increase to 4.0% in May and expectations of a further rise to 4.2% for June 2026. The increase is partly attributed to the universal import tariffs ranging from 10% to 25% introduced by Trump in April 2025. Meanwhile, Uber remains in active negotiations for a deal related to its $10 billion shift towards autonomous vehicle infrastructure.

Key Takeaways

• Hassett’s comments appear to suggest confidence in Trump’s policies despite the CPI indicating rising inflation.
• The ongoing increase in inflation is consistent with scenarios reflecting the impact of Trump’s import tariffs.
• Market pricing suggests that Hassett’s remarks could influence expectations regarding Federal Reserve decisions.

What to Watch

The Federal Reserve’s upcoming decisions, particularly at the July 28-29 meeting, will be pivotal. Markets currently suggest a 93.5% probability of no change in interest rates following this meeting. Observers will be watching for any shifts in Fed communications or economic data that could suggest a change in policy direction. Key indicators will be the actual inflation data and any statements by Fed officials regarding their outlook on inflation and economic conditions.

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Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.