White House National Economic Council Director Kevin Hassett on Sunday defended President Donald Trump's move to roll back tariffs on items such as coffee, bananas, beef, and tomatoes, saying the move will help ease household costs, even if they don't immediately erase what he described as years of inflation under former President Joe Biden.
"We understand that people still feel the pain of the high prices, but we're closing the gap and filling the gap fast," Hassett told ABC News' "This Week" while arguing that the inflation created under Biden's term created strain on American families' budgets through higher grocery costs and mortgage payments.
"Purchasing power dropped by about $3,000 under Joe Biden because the wages didn't keep up with prices," said Hassett. "Under President Trump, it's already gone up by about $1,200."
"We understand that people still feel the pain of the high prices, but we're closing the gap and filling the gap fast," he added.
Pressed on whether removing tariffs will lead to lower prices on everyday goods, Hassett said costs will come down as supply increases, but emphasized that tariffs were not the primary driver of recent price spikes.
"Everybody was saying we're going to have stagflation because of the tariffs, but in fact, year-over-year inflation is down," said Hassett.
"The latest inflation report shows that it's 2 1/2%, and that's very close to the Fed's target, and that happened with tariffs coming," he added.
Hassett also said that global suppliers, particularly in China, lowered their prices to stay competitive.
"We didn't get stagflation because the inelastic suppliers have been lowering their prices," he said.
When confronted with data showing coffee, ground beef, bananas, and other common grocery items continue to rise in price, Hassett noted that some food categories have fallen, citing eggs as an example.
He attributed persistent increases in meat prices to slowed imports from Mexico tied to a pest infestation.
Hassett also pointed to deficit reduction efforts as a key part of the administration's anti-inflation strategy.
He said the federal deficit has dropped by nearly $400 billion this year and could reach a $600 billion decline by year's end.
"If you want to control inflation, you've got to not spend like a drunken sailor," he said.
The discussion grew tense over Trump's claim that Thanksgiving costs are down 25%, which has been challenged by analysts who note that lower advertised holiday packages contain fewer items than the year before.
Hassett countered that prices rose far more sharply under Biden and argued that inflation has eased considerably since Trump returned to office.
Asked about skyrocketing health insurance premiums facing millions of Americans, Hassett blamed the Affordable Care Act and Democrats for rising costs, saying its subsidies and expansions made the program unsustainable.
He said Trump has already outlined broad plans to address the issue but did not provide specifics.
"The Democrats are at fault for this," Hassett said, maintaining that Republicans proposed fixes in earlier legislation.
The administration, he insisted, is making progress on inflation and economic pressures.
"Inflation is way down," Hassett said. "This is something that's being fixed fast."
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