Watch CNBC’s full interview with White House National Economic Council Director Kevin Hassett

Summary

Kevin Hassett, White House National Economic Council Director, discusses the latest jobs report, productivity, Fed rate policy, tariffs, AI, housing, defense spending, and Venezuela oil. He argues the US economy is in a high-growth, high-productivity, low-inflation regime supported by supply-side expansion and onshoring. He outlines policy tailwinds for US manufacturing, chip production, housing, defense, and refiners, while noting legal and implementation risks around tariffs and mortgage rates.

• Jobs report was roughly as expected; unemployment fell and labor force participation is improving.
• Hassett sees strong productivity and GDP growth without accelerating inflation.
• Tariff-driven onshoring is visible in capital goods imports and factory groundbreakings.
• AI is boosting productivity and corporate earnings, in his view.
• The administration is preparing a housing plan and watching mortgage rates.
• He expects increased defense spending to be demanded in the budget debate.
• Venezuelan heavy sour crude could return to US refineries, affecting refiners and gasoline prices.
• Tariffs legal authority remains a key policy risk if the Supreme Court rules against the administration.