NEC Director Kevin Hassett on August jobs: 'A really blockbuster number'

Summary

Kevin Hassett calls the August jobs report a blockbuster number and attributes it to policy-driven capital spending, factory construction, and manufacturing reshoring. He argues the Fed may hold rates steady if inflation stays low and supply-side growth continues. He also likens AI to the internet productivity boom, suggesting it can support high growth with low inflation.

• August jobs came in far above all Bloomberg forecasts.
• Hassett credits tariffs and expensing for onshoring and factory construction.
• Capital spending has roughly doubled relative to GDP since Trump took office.
• Factory construction employment is up 90,000 and factory jobs up over 50,000.
• Three-month annualized core CPI is running at 1.6%.
• Hassett sees a strong case for the Fed holding rates steady if CPI remains favorable.
• AI is viewed as analogous to the internet-era productivity boom.