The “look at your wallet” defense
Kevin Hassett, the White House’s National Economic Council director, spent his Sunday on ABC’s This Week basically telling Americans to zoom out. Yes, gas prices are annoying. Yes, inflation still has a seat at the table. But, in his view, rising real wages mean households are better off than the panic suggests.
He leaned hard on the idea that people should look past the monthly whiplash and focus on what’s left after prices. In his telling, the economy is still handing workers a bigger paycheck cushion, even if the vibes at the pump are doing their best impression of a jump scare.
Why investors should care
This isn’t just political chatter. When the administration is publicly brushing off inflation fears, it’s signaling confidence that consumer spending can keep humming without a fresh policy scramble. But the backdrop is messy:
- Energy prices are still a pressure point, especially with war-related supply fears hanging over oil.
- Hassett pushed back on Exxon Mobil’s warning that low inventories could spark another oil spike.
- The broader data picture is less cheerful than his sound bites, with some wage and inflation readings still tugging in opposite directions.
The bigger picture
For markets, this is another reminder that inflation narratives are sticky. Consumers may keep spending if paychecks keep growing, but if fuel and food keep climbing faster than wages, that “we’re fine” story gets harder to sell.
Big picture: when Washington says the economy is strong, investors usually ask one question back — strong for whom, exactly?