Kevin Hassett, chair of the White House Council of Economic Advisers under President Donald Trump, acknowledged that food and gas prices remain 'still high.' However, he countered claims that tariff policies are increasing consumer burdens, stating, 'Overall prices are stabilizing rapidly.'
In an interview on August 9, Hassett remarked, 'Food prices are still too high, and there are many challenges that need to be addressed.'
Regarding rising gas prices due to the war in Iran, he admitted, 'They are still higher than we would like.' However, he noted that international oil prices, which exceeded $100 per barrel during the height of the conflict, have recently dropped to the high $70s to low $80s, and he anticipates further declines.
Hassett explained that factors such as U.S. Navy escorting commercial vessels, increased domestic oil production, and exemptions from the Jones Act have contributed to the decrease in gas prices. The Jones Act restricts cargo transport between U.S. ports to American vessels, but the Trump administration has temporarily exempted foreign ships from transporting oil and fuel within the U.S. following the Iran conflict.
He stated, 'About 100 million barrels of U.S. oil are being transported to the East and West Coasts due to the Jones Act exemption,' adding that energy prices could fall further if tensions in the Gulf region ease.
Hassett drew a line against claims that tariffs have driven up prices, emphasizing that the Consumer Price Index (CPI) fell by 0.4% in June, and the Personal Consumption Expenditures (PCE) price index decreased by 0.1%. 'All price indicators are slowing down,' he asserted.
However, both the June CPI and PCE price index increased by 3.5% and 3.7%, respectively, compared to a year earlier, indicating that price pressures have not completely dissipated. Food prices also rose by 3.0% year-over-year.
The White House and the Federal Reserve have differing views on the impact of tariffs on prices. The Fed recently reported that tariff increases have had some effect on rising consumer goods prices.
Despite this, Hassett characterized the Trump administration's tariff policy as a 'very successful trade policy,' asserting that increased domestic production by companies will lead to job growth.
* This article has been translated by AI.
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