The next is the transcript of the interview with Kevin Hassett, Nationwide Financial Council director, that aired on “Face the Nation with Margaret Brennan” on Nov. 9, 2025.
MARGARET BRENNAN: We start this morning with the Director of the White Home Nationwide Financial Council, Kevin Hassett. That is now the longest shutdown in American historical past. The treasury secretary instructed us two weeks in the past November 15 was the laborious cease for any paychecks going to US troops. Does that stay the purpose of exhaustion?
KEVIN HASSETT, DIRECTOR, NATIONAL ECONOMIC COUNCIL: Proper, I believe that- that is about the proper quantity. And the issue is that below the regulation, we’re not allowed to spend cash that hasn’t been appropriated. And there’s a regulation, the Antideficiency Act, that claims that if a authorities official spends cash that is not appropriated by Congress, which is able to solely occur if the Democrats vote to open up the federal government, then you may even have felony penalties. And so persons are very fastidiously finding out the regulation and attempting to get as a lot cash out the door as is authorized. And we’re very glad that we discovered a strategy to get plenty of the SNAP cash out, however it’s actually pushing the boundaries of the regulation, which is why the Supreme Court docket needed to take that ruling from Rhode Island and put it on maintain.
MARGARET BRENNAN: Till the decrease courtroom rules–
HASSETT: Till the decrease courtroom goes again and comes up with a authorized justification for what they mentioned, as a result of there in all probability is not one, sadly, which is why we’ve got to get this authorities open. I imply, the very fact is Goldman Sachs, they’ve a high financial group, and so they’re estimating that we have already knocked about 1.5% off of GDP. I believe that quantity might be low if we maintain going even a pair extra weeks, as a result of there’s going to be a large quantity of air disruption, particularly across the holidays. And one in every of these items every so often once we’re speaking economics, you and I, we speak about seasonal changes and issues like that. However the truth is that Thanksgiving, that Thanksgiving time, is likely one of the hottest instances of the yr for the financial system. It is Black Friday, you realize, and all that sort of stuff. And if individuals aren’t touring at that second, then we actually could possibly be taking a look at a unfavorable quarter for the fourth quarter.
MARGARET BRENNAN: Which is considerably disruptive to the president’s agenda. However to the purpose you have been simply making about meals stamps, and we noticed this Friday, a short lived keep by the Supreme Court docket that will block full meals stamp advantages pending the decrease courtroom resolution. The administration’s argument, as you simply referenced there, was that it could be unlawful to maneuver round funding and to faucet the Part 32 account on the USDA. However why not do that as a brief time period patchwork answer? As a result of you might have discovered methods with the army pay to stretch issues out. Why prioritize in that case and never achieve this with meals?
HASSETT: Properly, the president’s job, and all of our jobs, is to uphold the regulation. And when- I am not a lawyer, however when the legal professionals inform us–
[CROSSTALK STARTS]
MARGARET BRENNAN: However are–
HASSETT: what we are able to do–
MARGARET BRENNAN: — that wasn’t carried out with the army.
HASSETT: However, however, however yeah, I believe that the army is completely different due to the commander-in-chief stuff. However the authorized evaluation means that we’re doing every little thing by the e-book, after which stretching issues as a lot as we are able to, and mainly attempting to maintain individuals from committing crimes. Which you realize, you realize about- within the season of lawfare, if you’re a cupboard secretary and also you spend cash that is not appropriated for that goal in your cupboard, then they’ll come again and so they can take you to courtroom.
MARGARET BRENNAN: However you are additionally making a political guess that Democrats aren’t going to problem paying the army. Do you actually suppose Democrats would problem and take to courtroom paying individuals for his or her meals stamp advantages?
HASSETT: Let’s simply say that we have seen Democrats–
MARGARET BRENNAN: –if, if Congress goes to fund it, when the shut- shutdown ends?
HASSETT: We- we have seen Democrats take to courtroom individuals that- on actually, actually poor costs, and so I believe they’re prone to do something.
MARGARET BRENNAN: Properly, it appears a political calculation is the purpose.
HASSETT: Properly, we, we do not have a political calculation. Our calculation is to get the federal government open, to get the meals stamps to individuals, and to get individuals to be paid, 750,000 authorities staff don’t get paid proper now. I do know you are speaking to the Governor of Maryland in a minute. I am certain his persons are actually hurting. Let’s simply get the federal government open, after which let’s speak about issues just like the healthcare premiums, however try this via common order.
MARGARET BRENNAN: So, it feels like you’re saying the place is similar, open the federal government, then we’ll speak about healthcare. However the president, simply up to now 36 hours, has put out a lot of social media posts. It sounds form of like he is proposing one thing in regard to medical insurance funds. He mentioned, I am recommended- to Senate Republicans that a whole lot of billions of {dollars} at present being despatched to money-sucking insurance coverage firms to save lots of unhealthy healthcare offered by Obamacare now be despatched to the individuals to allow them to buy their very own a lot better healthcare. He additionally mentioned they need to terminate Obamacare. What does this various system seem like? As a result of your entire standoff is about healthcare proper now.
HASSETT: Proper. Properly, the president is, you realize, a wonderful tactician, a wonderful negotiator–
MARGARET BRENNAN: That is an off–
HASSETT: –And this is- you realize, what he mentioned, he is brainstorming and attempting to assist the Senate give you a deal that may get the federal government open. And one of many issues you may do is conservatives imagine that they do not need the federal government to micromanage individuals’s lives. And you realize, all people believes that folks ought to have healthcare, and so why not take the individuals who have larger healthcare premiums and simply mail them a test and allow them to determine? The rationale why it may have an impact is that there are a number of tiers below the Inexpensive Care Act of various kinds of insurance coverage, and it could possibly be that folks would quite have the cash and go from like, you realize, this sort of plan to that sort of plan and save themselves a bit bit. And in order that’s, that is, you realize, mainly giving the individuals a possibility to make extra decisions than the federal government normally lets them.
MARGARET BRENNAN: Is that this the Senator Cassidy proposal?
HASSETT: I am certain that Senator Cassidy and President Trump talked about it, however whether or not he agrees with every little thing that Cassidy- I have not talked to him about it but.
MARGARET BRENNAN: Properly, does the Republican chief within the Senate accept–
HASSETT: –The president–
MARGARET BRENNAN: –this proposal?–
HASSETT: — the president began this concept yesterday, I do not suppose that it has been mentioned extensively within the Senate but.
MARGARET BRENNAN: So the president–
HASSETT: It is the weekend.
MARGARET BRENNAN: –The Senate’s in session this weekend–
HASSETT: –Sure, the Senate is in session this weekend and we are–
MARGARET BRENNAN: as a result of they’re attempting to finish the shutdown–
HASSETT: –And right here I’m.
MARGARET BRENNAN: However this isn’t the Republican Occasion’s place.
HASSETT: As of proper now, it isn’t the Senate place, however the president thought it was one thing they need to take into consideration.
MARGARET BRENNAN: Properly, he appears to be negotiating earlier than the federal government’s open.
HASSETT: He is speaking to his colleagues within the Senate on the Republican aspect.
MARGARET BRENNAN: However you’d agree that there does must be a deal on healthcare, that healthcare prices are too excessive.
HASSETT: Properly, I believe that if you happen to have a look at the Inexpensive Care Act, these premiums weren’t made everlasting by the Democrats throughout the COVID emergency as a result of they’re nervous concerning the budgetary prices. And so if you happen to have a look at the premium will increase, they do not have an effect on most individuals under two instances the poverty line, 3 times the poverty line. However there are plenty of senior residents which can be above, like, round 4 instances the poverty degree, which with a husband and spouse group could be about 120,000, which can be seeing actually large premium will increase. And I believe that everyone’s going to wish to take into consideration what the following step for that will be, as a result of are seeing- once more most individuals aren’t seeing a lot of a rise in any respect, however the most will increase you are seeing could possibly be as much as about $500 a month for seniors who’ve actually expensive plans.
MARGARET BRENNAN: The president has additionally been speaking about affordability, and our CBS polling reveals the president’s approval score on the financial system has dipped to 38%, the bottom of this time period. 75% of these polled say he isn’t focusing sufficient on reducing costs, however the president mentioned this week Democrats are making it up and quote, “each value is down.” I am certain you realize the Client Value Index confirmed grocery costs are up practically 3%, in September from a yr in the past.
HASSETT: –well–
MARGARET BRENNAN: –Do you dispute that?
HASSETT: Properly, truly, let’s undergo the information, proper? Inflation went up about 5% below President Biden. In President Trump’s first eight or 9 months, relying the place we get the final quantity, it is up 2.7%. One of many large issues that is hurting affordability is mortgages. The rate of interest went up by about 4%.
MARGARET BRENNAN: That is grocery prices–
HASSETT: –No, grocery costs are literally down considerably below Trump. However here is the thing–
MARGARET BRENNAN: –but is dependent upon which–
HASSETT: Let me– I will simply make a degree.
MARGARET BRENNAN: Okay.
HASSETT: That if you happen to have a look at the true discount in spending energy for Individuals below Joe Biden, then it went down about $3,000 as a result of we had as much as 9% inflation, after which they went to the grocery retailer, they could not purchase the issues they’re used to purchasing. The true spending energy, adjusted for inflation, below President Trump has gone up about $1,200 to this point this yr. $1,200 shouldn’t be $3,000, and so persons are proper to really feel stretched, however we’re making progress. And if you happen to have a look at all of the constructive issues concerning the financial system, industrial manufacturing nearly at an all time excessive, capital spending about at an all time excessive, GDP development proper now about 4%, then that reveals that the revenue development that we have to get extra affordability is on the trail to occurring. And the underside line is that the final Client Value Index shocked down. It was decrease than anticipated, and it could have been even decrease as a result of there was a refinery shutdown that prompted it to go barely larger. So we see inflation below management and the financial system booming, however we perceive 100% why persons are nonetheless hurting, as a result of we’ve not made up all of the room that was misplaced below Joe Biden.
MARGARET BRENNAN: So are you comfy with 3% inflation?
HASSETT: I am comfy with 2% inflation.
MARGARET BRENNAN: So no, you are not glad the place issues at the moment are.
HASSETT: Properly, they received to go down a bit bit extra, however there- however the level is that inflation is just like the Queen Mary, my good friend Alan Greenspan used to say, so once you go from virtually 4% that we had in January right down to the mid twos, then that is a trajectory that normally has momentum.
MARGARET BRENNAN: So the St. Louis Fed discovered tariffs account for half a proportion level of the annual inflation price. How a lot do you suppose the tariffs are mountain climbing costs?
HASSETT: You recognize, there’s a few papers on the market that say that costs went up by between two tenths and 5 tenths. And the factor to recollect, if these papers are true, is that that is a degree regulate, as a result of the tariff goes in, after which the tariff is simply there, so it would not have an effect on inflation sooner or later. It might be a one time degree regulate. Our estimates at CEA are a lot nearer to zero, and it is all primarily based on modeling and assumptions about elasticities and issues. However for probably the most half, the a technique you may see it’s you may have a look at the worth of imported items, and the worth of imported items, CEA put a report out, has truly been declining below tariffs. As a result of what occurs is that the Chinese language wish to promote us plenty of stuff, and there is a tariff, so that they reduce their costs in order that they’ll nonetheless have a bigger market share within the US.
MARGARET BRENNAN: Kevin Hassett, at all times good to have you ever right here. After all, we’ve got to go away it there for now. We’ll be proper again in a minute. Stick with us.
