Economic Advisor Points to Strong Growth, AI Boom, and Deficit Reduction

White House economic advisor Kevin Hassett declared the Trump administration's trade agenda a success on Thursday, pointing to recent GDP figures as a "great Christmas present for the American people." In a wide-ranging interview, Hassett outlined a bullish economic outlook while criticizing the Federal Reserve for being "way behind the curve."

Data-Driven Optimism Amidst AI Transformation

Hassett emphasized that the economic strength is visible in hard data. "Prices are down and income is up—that's why we have such strong growth numbers," he stated. He specifically highlighted the impact of artificial intelligence, noting that the "AI boom is being seen in the data" and is affecting jobs across the board, regardless of specific roles.

On employment, Hassett projected that if GDP growth remains around 4%, job gains would settle back into a range of 100,000 to 150,000 per month. He also addressed a curious disconnect in the economy, stating, "Consumer sentiment is uncorrelated with the hard economic data," despite people being "very optimistic about their income growth."

Policy Wins and Future Plans

The advisor touted significant fiscal progress, announcing, "We have reduced the deficit by $600 billion year-over-year." Looking ahead, he revealed that the administration will be "finalizing a housing plan that will be announced sometime in the new year."

Fed Chair Speculation

Notably, the report mentions that Hassett remains "one of the favorites for the Fed chair position," a role that would put him in charge of the institution he currently criticizes for its interest rate policy.