Politics Commentary
As the new administration continues shaping its economic agenda, two key officials offered a clearer look at how the White House views the nation’s financial trajectory. Appearing separately on major Sunday news programs, National Economic Council Director Kevin Hassett and Treasury Secretary Scott Bessent delivered the most detailed outlook yet regarding how the administration believes the economy is responding to its opening months of policy.
Their combined message was straightforward: while Americans are still feeling the strain of high prices, the administration believes the early signs point toward a gradual — but steady — economic rebound.
A Reset After Years of Volatility
During an interview on ABC’s This Week, Hassett framed the current moment as a turning point following several years of economic instability. Without diving straight into political blame, he emphasized what he described as a “significant amount of inflationary pressure” that had built up in the years prior.
Hassett used several common-experience examples to illustrate how elevated inflation affected households. Mortgage interest rates, for instance, had surged high enough that the average monthly mortgage payment nearly doubled for many families compared to conditions earlier in the decade. Everyday costs, particularly food prices, also became a major concern. Hassett noted that an average grocery trip had increased by $100 to $150, depending on region, since the previous administration’s final year.
These were not abstract numbers, he argued, but real conditions felt at the checkout lines, in family budgets, and in long-term financial planning.
Even now, he acknowledged, “Americans still feel the pain of the high prices.” But the administration’s argument is that although the ship is large and slow to turn, it is turning.
Real Wages and the Question of Purchasing Power
One of the central points Hassett raised involved real wages — a measure economists often use to determine whether people can buy more or less with the money they earn. According to Hassett, real purchasing power had fallen by roughly $3,000 during the previous term, meaning wages had not kept pace with rising prices.
He claimed that under the current administration, purchasing power has begun to climb again, recovering about $1,200 thus far. Although that still leaves a significant gap compared with earlier years, Hassett suggested that the direction matters just as much as the amount. Positive movement, even if incremental, signals momentum.
Hassett described the economy as similar to an aircraft carrier — big, powerful, and slow to turn. Policy changes do not produce instant change, he said, but can set long-term direction if carried out consistently.
Bessent: Growth, Not Gimmicks, Will Drive Recovery
Treasury Secretary Scott Bessent, speaking on Fox News with Maria Bartiromo, echoed Hassett’s cautious optimism. While he avoided claiming any instant turnaround, he said the administration expects steady, organic improvement as growth-oriented policies roll out over the next year.
For Bessent, the key word is growth — not temporary stimulus, but long-term increases in economic output. He noted that the administration’s flagship economic package, dubbed the “One Big Beautiful Bill,” is designed to stimulate investment, expand production, and lower the tax burden on everyday workers.
Bessent highlighted that the administration’s tax policies — including no tax on tips, no tax on overtime, and no tax on Social Security income — were designed not only to fulfill campaign promises but also to increase the amount of money people can keep from their paychecks.
In his words:
“The real thing that is going to give Americans real purchasing power increases is growth.”
Reducing taxes on supplemental income streams, he argued, provides workers with immediate financial relief while broader economic reforms take hold.
Balancing Immediate Challenges With Long-Term Strategy
Economists inside and outside the administration agree that the United States is emerging from an unusually turbulent combination of events: a surge in inflation, supply chain disruptions, rapid wage adjustments, and fluctuating interest rates. Even in normal circumstances, correcting any one of these factors would require time; addressing all simultaneously is even more complex.
Administration officials acknowledge that challenges remain:
• High housing costs
Even if rates fall, low inventory keeps prices elevated, limiting affordability for first-time buyers.
• Stubbornly high food prices
While inflation has slowed, many food categories have not returned to pre-2020 levels, making groceries a continued pressure point for families.
• Wage adjustments
Although wages have risen, they still lag the cumulative increase in costs over the past several years.
Hassett and Bessent did not dismiss these issues. Instead, they argued that their policies were calibrated to address both immediate strain and long-term structural concerns.
A Measured Tone, but Clear Confidence
Despite the sharp contrast between political parties in how economic conditions are interpreted, both Hassett and Bessent adopted a more measured tone than some of the more partisan voices in public debate. They avoided declaring victory or suggesting the economic challenges of the last several years have been fully resolved. Instead, they portrayed the current trend as a slow but meaningful correction toward stability.
Hassett repeatedly returned to the theme of closing the gap. Prices rose sharply over several years, and wages did not rise at the same pace — a trend that cannot be reversed overnight. What the administration wants to show now is that the trend line has finally bent back in workers’ favor.
Bessent took a broader view, emphasizing that achieving durable growth — the kind that expands investment, increases productivity, and lifts wages — takes more than a single policy package. It requires restoring confidence, encouraging businesses to expand, and ensuring households have enough purchasing power to play an active role in the economy.
Looking Ahead: What Americans Can Expect
If the administration’s forecasts are correct, Americans may see:
1. Gradual Relief in Real Purchasing Power
As wages continue to rise and prices stabilize, families could regain more of the spending flexibility lost during prior years.
2. Slow Moderation in Housing Costs
Should interest rates ease over time, mortgage payments may fall — though housing supply remains a larger structural issue.
3. Slight Declines in Certain Consumer Prices
Particularly in goods affected by supply chain recovery, though food and services may remain elevated.
4. Wider Effects From Tax Reforms
Workers who rely on overtime or tips may feel immediate relief from no longer paying taxes on those earnings.
Conclusion
The administration’s economic team is sending a unified message: while the past several years have taken a toll on American households, early indicators suggest that the economy is slowly but genuinely regaining balance. The officials did not promise dramatic overnight shifts — instead, they emphasized steadiness, structural improvement, and a long-term commitment to boosting the purchasing power of workers.
Whether these trends continue will depend on a complex combination of global conditions, domestic policy, and market responses. But for now, the White House appears confident that the rebound is underway — even if the process is gradual, difficult, and far from complete.