NEC director on economy, anti-weaponization fund and ballroom funding

WASHINGTON (CBS, KYMA) - Kevin Hassett, Director of the National Economic Council, spoke with Nancy Cordes on Face the Nation Sunday about the state of the economy.

According to Cordes, the Dow Jones hit an all-time high while consumer sentiment hit an all-time low, with mortgage rates hitting a nine-month peak, inflation being up, earnings at big box stores, like Walmart, are up because people across the income spectrum are being drawn to low prices right now.

This prompted Cordes to ask Hassett if there are storm clouds gathering in the economy, to which he said:

"No, I don't think there are storm clouds gathering at all. And, in fact, let's start with the consumer sentiment number, because that was a number that was very striking to me and to you. I know when it came in very, very low, and what we did is we went to their website and we looked that they actually break it out by political affiliation, so they have it for Democrats, independents, and Republicans. And if you look at it, consumer sentiment at the sort of peak of the Biden inflation, the stagflation was way above 100 and it's dropped all the way down into the low 30s now, about the lowest it's ever been for Democrats, but for Republicans it's held about steady, and if you look at it, independents and Democrats are really highly correlated, which suggests to us that their sample is Democrats, and so if you go to consumer confidence, which is something that's actually, I think, a more scientific survey, the consumer confidence is consistent with all the other positive numbers we're seeing right now."

Cordes then says, "Memorial Day weekend gas prices are at a four year high," with AAA saying they'll remain elevated throughout the summer.

She also brought up Hassett's comments from last month, where he said high gas prices would be a temporary phenomenon, leading her to ask if the White House paint too rosy of a picture of the impact the war with Iran would by emphasizing this was going to be a four to six week excursion, and Hassett said:

"I think the four to six week was an accurate description of like when the sort of active kinetic events were going to happen. Right now, I'll let the president decide on whether he thinks the deal is ready to go this week or not. But the bottom line is, once the straits are open, then the tankers are going to go back and they're going to refill the refineries almost right away. A tanker goes about 300 nautical miles a day, and so the places like India and Pakistan, which are close to the straits, are going to get their oil and then turn it into refined product right away. Singapore, which is one of the places where jet fuel prices are the highest, is going to get its stuff just about right away, but if you're down in New Zealand, it'll take a little bit longer, but really, like between a month and two months, we expect everybody to have all the oil they need at every refinery on Earth."

During the interview, Cordes and Hassett talked about the $1.8 billion anti-weaponization fund that would compensate allies of President Donald Trump.

According to Cordes, the fund received backlash for derailing a bill to include funding for ICE and CBP, which led her to ask what the Trump Administration is doing to try to cool members of the Republican Party on the issue, as she said they seemed angry and blindsided, and Hassett said:

"I don't know if across the board they were, but there's certainly some people who felt that way. And our Head of Leg Affairs, James Braid, is a real professional. He's been talking to everybody, he's been arranging for phone calls with those of us at the White House that want to talk to people and hear people's concerns, but the bottom line is that you know we expect the progress that the President wants to see in Congress to happen. Congress has delivered over and over under the leadership of Mike Johnson, and so I understand that, you know, there's something that was a little bit different this week than maybe you expected, but I don't expect that to go on. And one thing we've seen from primaries is that people that buck the president generally regret it politically."

Cordes also brought up a Wall Street Journal editorial regarding the White House ballroom, saying, "Republicans don't want to say this publicly, but privately they do. President Trump's personal political obsessions are hurting his presidency, hurting the chances for further foreign policy gains, and putting control of the House and Senate in jeopardy."

When asked if the president realizes he's putting Republicans in a tough spot by forcing them to take votes on things that are unpopular, like the war with Iran, the ballroom and the fund, Hassett said:

"I respect the Wall Street Journal very much. I saw Paul Gigot at the Kevin Ward signing in just on Friday, but the bottom line is the president believes that the ballroom is something that should have been there for a long time, and he's using his own money and the money of donors to make it so that the taxpayers don't have to pay for that ballroom...that's for securing the entire White House. And, my goodness, to argue about that after we were all here yesterday, I actually wasn't here, I was at my home, a couple blocks away when the shooting happened. Of course, we've got to make the White House more secure, but on the $1.8 billion fund for weaponization, I don't think you would disagree, right? The previous administration and the Obama administration weaponized government against President Trump, and what he wants to do is make sure that never happens again and compensate the people who were the targets of the destruction of their lives, what they would do is they would call people in to Jack Smith's office, and then bury them in subpoena requests and bankrupt them, and that's something that should never happen again, never. And I think that I doubt that there's anyone that disagrees with that."

To watch more of Cordes' interview with Hassett, click here.