Fox Host Questions Trump Aide About Slower-Than-Expected Economic Growth

On Friday, Fox Business anchor Maria Bartiromo asked Kevin Hassett, the head of the National Economic Council, a tough question live on TV. She reminded him that he had predicted the U.S. economy would grow by 4 percent. Instead, the government reported that the economy grew by only 1.5 percent in the second quarter of the year — much lower than expected. Bartiromo wanted to know why the numbers did not match the promises.

Hassett pushed back on the headline number. He said the overall figure did not show the full picture of how the economy was doing. He pointed to a different measurement called 'final sales within the U.S.,' which he said came in at about 3.9 percent — very close to the 4 percent he had predicted. He argued that a big jump in imports pulled the main number down, because when the U.S. buys a lot of goods from other countries, those purchases are subtracted from the GDP total.

GDP stands for gross domestic product. It is the main way economists measure how much the economy is growing or shrinking. The government's Bureau of Economic Analysis said the GDP slowdown happened because the government spent less money and exports fell. However, consumer spending — the money regular people spend on goods and services — actually went up, which helped soften the drop.

Hassett also talked about inflation, which is the rise in prices for everyday things like food and gas. He said increased business spending would help push prices down over time by adding more supply to the market. However, not everyone agreed with his rosy view. Jeffrey Frankel, a professor at Harvard University, told Newsweek that inflation is 'clearly too high, whether from the perspective of American households or the Federal Reserve Governors.' The Federal Reserve aims to keep inflation at around 2 percent, but it is currently much higher than that.

One important inflation measure, called PCE, rose at a 5.1 percent annual rate in the second quarter. Another measure, called CPI, sits at 3.5 percent. Energy prices jumped by 15.7 percent, making gas and electricity much more expensive for families. These high prices are a big reason why many Americans say they are unhappy with how the economy is going.

Polls show that most Americans are not feeling good about the economy right now. In a CBS News poll, only 34 percent of people approved of how President Trump is handling the economy, while 66 percent disapproved. On inflation specifically, just 27 percent approved of his performance. A Harvard CAPS/Harris Poll found that 54 percent of Americans think the economy is weak, and 46 percent say their personal financial situation is getting worse.

Gas prices are one of the biggest worries for many voters. A year ago, a gallon of regular gas cost about $3.15. Today it costs about $4.10 on average, according to AAA. The increase is partly due to the Iran war and disruptions to major shipping routes in the Middle East, which are important for moving oil around the world.

President Trump has said the U.S. economy is the strongest in the nation's history. He has pointed to a low unemployment rate of 4.2 percent and gains in the stock market as proof. Republicans support Trump's view, saying his policies are helping the economy grow. Democrats disagree, pointing to high prices, tariffs, and the ongoing Iran war as signs that many Americans are still struggling.

Hassett also spoke about artificial intelligence, or AI, during the TV interview. He argued that AI data centers — large buildings filled with powerful computers — are good for small towns because they bring jobs and well-paid workers who spend money locally. However, a poll by Emerson College found that 63 percent of voters are more concerned than excited about AI. The same percentage said they oppose having a data center built near their community, and at least 430 local groups in 40 states are now organizing to fight large AI data center construction.