Kevin Hassett, the US director of the National Economic Council, says trade talks between the United States and Canada are gaining speed, suggesting that the two neighbors may be getting closer to putting their dispute behind them.
Kevin defended Donald Trump’s management of the US economy on Sunday, right when Republicans start making their final attempts to appeal to voters ahead of the mid-term elections.
During an interview on Fox News, he argued that the overall numbers tell a much better story than complaints about living costs suggest. The problem for the White House is that people don’t pay their bills with GDP figures.
Kevin says economic growth is strong, but everyday prices tell another story
Kevin said, “So the great big picture about the economy is that it’s about the best economy we’ve ever seen.”
Economic strength is indicated by 3% to 4% growth each year, low unemployment rates, and industrial output at its highest since the pandemic. The American economy is also growing faster compared to economies in other G7 countries. However, none of these metrics give any indication of how much a trip to the supermarket costs this week.
“Now, I’m sure there are going to be pockets that need some repairs or that, hopefully, as President Trump said, energy prices will drop like a rock, then the 3 or 4 percent growth that we have right now will go even higher.”
Inflation has moved in the wrong direction lately. The annual consumer price index rose from 3.4% in August to 3.7% in September, while food inflation reached 4.4%, up from 3.5% under the previous administration.
Some grocery products have been seen to be becoming quite expensive as well. Coffee prices have increased by 22%, ground beef prices have increased by 25%, while cereals and baked products have gone up by 3.7%. According to an analysis done by The Telegraph, a family of four is spending an extra $23.84 each month.
It’s not only food. An average American household now spends $77 more each month on fuel than it did in February. And for someone buying a house in October with a 20% down payment, the yearly cost of a 30-year fixed-rate mortgage is about $1,866 higher than it was before the Iran war.
So far during Trump’s administration, the inflation rate has been 5.4%, while during Biden’s administration for the last 20 months, it is only 3.8%.
Iran war keeps gasoline expensive as midterm voters grow frustrated
The war with Iran has made energy a particularly sensitive issue. Iran’s effective shutdown of the Strait of Hormuz, the route used for roughly 20% of global oil exports, has unsettled supplies and helped keep prices elevated.
The price of gas on Sunday, according to AAA, was $4.29 per gallon. This was down 20 cents from what it cost a month ago, and the price had been fairly stable for the past weeks. Nevertheless, this price was way above the $3.06 average a year back.
Trump has repeatedly said gasoline prices should fall after the US wins the conflict. At a Saturday rally in Perry, Georgia, he campaigned for Republican Senate nominee Mike Collins and gubernatorial nominee Rick Jackson, while addressing criticism surrounding fuel costs.
“I can just see the fake headlines. ‘President Trump is talking about all the money they’re making while people are suffering at the pump.’ I don’t give a damn. We’re making a freaking fortune,” said Trump.
However, that message is accompanied by some tough polling numbers. As reported by The Financial Times/Focaldata, a poll conducted earlier this month showed that roughly a quarter of those surveyed approve of Trump’s handling of the economy. Even fewer, two out of ten people, approve of his handling of inflation.
Meanwhile, a Siena University/New York Times poll, released Tuesday, shows 36% of voting adults approve of Trump’s job performance versus 59% who do not approve.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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