Transcript: Kevin Hassett on "Face the Nation with Margaret Brennan," November 30, 2025

The following is a rewritten and unique version of the conversation with Kevin Hassett that aired on "Face the Nation with Margaret Brennan" on November 30, 2025.

Holiday Shopping Outlook

Margaret Brennan: Kevin, thanks for joining us today.

Kevin Hassett: It's a pleasure to be here.

Margaret Brennan: The holiday season is underway. Surveys from major banks suggest that low- and middle-income Americans plan to spend less due to higher prices. Some analysts argue that any increase in spending is mostly due to price hikes. Is this a temporary effect or a lasting one from the trade policies?

Hassett: Those surveys were anticipatory, but the actual data from Black Friday and Saturday shows strong sales. Online sales jumped nearly 10%, while in-store purchases rose 4%. This demonstrates that consumer anxiety over holiday spending was overstated. Rising incomes and strong employment numbers, along with some pent-up demand from the recent government shutdown, contributed to this solid shopping weekend.

Price Increases and Consumer Advice

Margaret Brennan: How much of the spending increase is because prices are higher? For instance, some toys have seen significant price jumps due to shipping delays from the trade war. What guidance do you have for shoppers concerned about higher costs?

Hassett: It varies by item. While some goods, like toys, have risen in price, other items, such as eggs and gasoline in certain states, have decreased. Overall, the average inflation is about 2.5% under Trump, half the rate seen under Biden, while wages are rising faster than prices. Real income has grown around $1,200 this year, boosting consumer confidence and spending during Thanksgiving weekend.

Public Perception and Economic Sentiment

Margaret Brennan: Polls show public skepticism. A CBS News survey reports 68% of Americans think the president's policies are driving grocery prices up, even as overall economic optimism has declined.

Hassett: Grocery prices have only increased 1.4% this year, well below the Federal Reserves 2% target. The recent tax cuts are returning money to people's pockets, increasing optimism for next year. Refunds from the tax adjustments will further strengthen consumer spending, suggesting a positive economic trend beyond Thanksgiving.

Healthcare Subsidies

Margaret Brennan: How does the expiration of Obamacare subsidies affect Americans' purchasing power? The White House initially proposed a two-year extension, then retracted it.

Hassett: The initial proposal was a pre-decisional leak. President Trump remains focused on lowering healthcare costs, including allocating $50 billion for rural hospitals and $30 billion for cost sharing. Most ACA participants continue to pay under $50 a month. The main concern lies with a small group facing high costs, not the majority of beneficiaries.

Federal Reserve Chair Speculation

Margaret Brennan: Bloomberg reports you are a leading candidate to replace Fed Chair Jay Powell. How did the interview process go?

Hassett: The report may not be accurate. I am honored to be considered alongside other candidates. Market reactions to the speculation were positive, with lower interest rates and strong Treasury auction results, signaling potential benefits for consumers through cheaper loans and mortgages.

Closing

Margaret Brennan: We'll soon learn the presidents decision. For now, Kevin Hassett remains Director of the White House National Economic Council. Thank you for your time.

Commentary: Assessing the Economic Outlook for Holiday Shopping and Beyond

The holiday shopping season is well underway, and despite concerns about rising prices, recent data suggests a stronger-than-expected performance from both online and in-store sales. Black Friday and Cyber Monday, traditionally key indicators of consumer sentiment, show that shoppers are not as restrained as some had anticipated. The fact that online sales grew by nearly 10% and in-store purchases rose by 4% indicates that consumers are still willing to spend, contrary to predictions that price hikes would dampen demand.

However, this positive shopping trend does not necessarily reflect a drastic change in overall economic conditions. Kevin Hassett, former Chairman of the Council of Economic Advisers, points out that while some goods have seen price increases, particularly toys affected by supply chain disruptions from the ongoing trade tensions, other essentials, like gasoline and eggs, have seen price drops. This more nuanced picture shows that inflationary pressures are not uniform across all sectors, and wages are outpacing price increases, boosting consumer confidence.

Despite the broader optimism surrounding the holiday sales, public perception of the economy remains skeptical. Polls, such as the CBS News survey, suggest that many Americans attribute the rising costs of goods to government policies, particularly the trade war and changes in tax policies. While Hassett acknowledges the complexity of public opinion, he emphasizes that the broader economic trends, including low inflation and rising real incomes, indicate a positive outlook for the economy. Moreover, tax cuts and healthcare subsidies are expected to further bolster consumer spending, which could drive a more sustained economic recovery in the months ahead.

Looking ahead, the expiration of Obamacare subsidies remains a concern for some households, especially those facing high healthcare costs. However, Hassett notes that the majority of Affordable Care Act participants continue to pay relatively low premiums, and the Trump administration's focus on reducing healthcare costs should alleviate some of the burden. While challenges remain, the administration's approach to supporting both economic and healthcare initiatives provides a balanced response to the concerns of middle- and low-income Americans.

In conclusion, while concerns over rising prices and economic uncertainty persist, the broader economic landscape shows promising signs of resilience. The holiday shopping season is likely to remain strong, bolstered by rising incomes, lower inflation, and tax adjustments. As long as key policies continue to support consumer confidence and economic stability, the outlook for 2026 remains positive.

Sources:

• Transcript: Kevin Hassett on "Face the Nation with Margaret Brennan," Nov. 30, 2025