Kevin Hassett, one of Donald Trump’s finalists for Federal Reserve chair, said on Wednesday that Congress has room to consider $2,000 tariff rebate checks next year.
He said this during a Bloomberg Economics event, and he made it clear he thinks tariff revenue is strong enough to support direct payments.
Hassett, who runs the White House National Economic Council, said the administration is making “so much progress on reducing the national debt” that it’s fair to look at new policies for the 2026 reconciliation bill.
He also said tariff revenue is coming in fast and said it is happening “without causing stagflation,” which is why he thinks the checks are now a real option. He tied the idea to Trump, who has pushed for tariff rebates as part of his trade agenda.
Hassett warns about inflation risks
Hassett said inflation is not fully under control. He said, “We lost control of inflation in recent memory, and it’s more under control now, maybe not all the way there.” He pointed out that wages did not rise at the same pace as prices when inflation was hot.
Because of that, real incomes fell, and many households felt squeezed. He said, “People are right to say that there’s been a problem with affordability.”
He brought up Alan Greenspan, saying the former Fed chair had called out “reckless” fiscal spending in the past. Hassett made it clear he also sees danger when spending runs wild, saying that if Congress repeats what it did before, “you would for sure see inflation go up.”
Hassett also said he would not have called inflation “transitory” back in 2021, pulling a direct contrast with Jerome Powell, who used that word during the spike in prices.
Hassett said Trump’s current policies are helping real wages rise, but he stressed again that risks stay high if lawmakers loosen the purse too much. Meanwhile, federal budget numbers show the US debt is still climbing.
The deficit hit $1.78 trillion through September. That is close to the $1.82 trillion posted in 2024. So while Hassett argued progress is happening, the raw totals continue going up.
Trump pushes Fed search toward final pick
Trump said on Tuesday he believes he already knows who he wants to run the Federal Reserve next. He said this in the Oval Office and said, “I’d love to get the guy currently in there out right now, but people are holding me back.”
Powell is still the Fed chair, but Trump has not hidden that he wants someone else.
Treasury Secretary Scott Bessent is leading the search. He has narrowed the list to Fed Governors Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, Hassett, and BlackRock executive Rick Rieder.
Trump said the list includes “surprising names” and “standard names,” and he said he might even “go politically correct” this time.
Bessent told Fox News on Tuesday that he expects the process to wrap up next month. He said there will be another round of interviews, then White House interviews after Thanksgiving. He said that by mid‑December, Trump will meet the final three candidates and may announce a choice before Christmas.
Trump again said he wants Bessent to take the job, but Bessent said on Fox News he enjoys his current role too much and said he can “safely say” he won’t be the pick.
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