Hassett: "Grocery and Oil Prices Still High"...Rejects Claims Tariffs Are Fueling Inflation

"Inflation Indicators Easing"
Oil Prices Expected to Fall with New Measures

Kevin Hassett, White House National Economic Council (NEC) Director, acknowledged on the 9th (local time) that the cost of living in the United States—including grocery prices and oil prices—remains higher than the government would like. However, he drew a line at criticisms that tariff policies are driving up consumer prices, noting that recent inflation indicators have shown signs of easing.

White House. Yonhap News Agency

In an interview with CNN that day, Hassett said, "Grocery prices are still high, and there are a lot of challenges that we need to address."

Regarding elevated oil prices since the Iran war, he evaluated, "Current prices are still higher than we would want them to be." He added, "We have implemented many actions to address the situation in the Gulf region, and we expect these new measures to significantly bring down prices."

He emphasized the recent downward trend in oil prices, noting that after peaking above $100 per barrel at the height of the conflict, prices recently have fallen to the high $70 to $80 per barrel range.

Hassett explained that oil prices have come down because the U.S. Navy escorted ships out of the Strait of Hormuz, domestic crude oil production in the United States has increased, and various measures such as Jones Act waivers have been implemented. He further noted, "With the Jones Act waiver, 100 million barrels of U.S. crude oil are being transported to the East and West Coasts."

After the Iran war led to a sharp spike in oil prices, the Trump Administration began temporarily waiving the Jones Act, which restricts cargo shipping between U.S. ports to American vessels. This allowed foreign ships to transport fuel within the United States in order to boost supply and mitigate upward pressure on oil prices.

Hassett also rebutted claims that the Trump Administration's tariffs have raised import prices and passed burdens on to consumers. In response to a question citing a recent Federal Reserve report indicating that the tariffs were passed onto consumers in the form of higher prices, he stated, "If you look at the latest inflation numbers, the June Consumer Price Index (CPI) showed a negative figure."

He pointed to the U.S. June CPI released last month, which dropped by 0.4% compared to the previous month, a decrease larger than market expectations. He also emphasized that the June Personal Consumption Expenditures (PCE) Price Index fell by 0.1% from the previous month, stating, "All price indicators are softening."

Hassett said, "The previous administration experienced high inflation, but inflation sharply eased after President Donald Trump took office," arguing that anyone claiming that tariffs have fueled inflation needs clear evidence. He went on to describe the Trump Administration's tariff and broader trade policies as "very, very successful trade policies."

This content was produced with the assistance of AI translation services.