National Economic Council Director Kevin Hassett delivered an upbeat assessment of the U.S. economy on Friday, proclaiming that GDP growth is "through the roof" and projecting a robust 4% expansion through the end of the year. Speaking at a policy forum in Washington, D.C., Hassett credited deregulatory measures and tax reforms for fueling the surge, marking a stark turnaround from the sluggish post-pandemic recovery under the previous administration.
The latest quarterly GDP figures underscore Hassett's optimism, with the Bureau of Economic Analysis reporting a 3.2% annualized growth rate for the fourth quarter of 2025—more than double the 1.5% recorded in the prior year's same period. Consumer spending, bolstered by wage gains and falling energy prices, accounted for over two-thirds of the increase, while business investment in manufacturing and technology sectors hit multi-year highs. Hassett highlighted these trends as evidence of a "supply-side renaissance," driven by streamlined permitting processes and incentives for domestic production.
Contextually, the economy's momentum builds on policy shifts implemented since the new administration took office. Key initiatives, including the rollback of expansive regulatory frameworks and targeted tariffs on key imports, have spurred a manufacturing revival, particularly in Rust Belt states. Economists note that unemployment has dipped below 3.5%, the lowest in decades, with inflation cooling to 1.8%—levels not seen since before the 2020 disruptions. Hassett's 4% forecast aligns with private-sector projections from firms like Goldman Sachs, which recently upgraded their outlook amid strong corporate earnings.
Yet, not all voices share the unbridled enthusiasm. Progressive critics argue that the growth masks rising income inequality, pointing to data showing the top 1% capturing a disproportionate share of gains. Federal Reserve Chair Jerome Powell, in congressional testimony last week, cautioned that while the expansion is broad-based, external risks like geopolitical tensions in the Middle East could pressure oil prices and supply chains. Hassett dismissed such concerns, emphasizing the administration's energy independence push as a buffer against volatility.
Looking ahead, Hassett's remarks signal confidence in sustaining the boom into 2027, potentially setting the stage for further fiscal maneuvers like infrastructure spending without inflationary spikes. Market reactions were positive, with the Dow Jones climbing 1.2% following the comments. As the U.S. economy outpaces global peers—Europe lingers at 1.2% growth, China grapples with property woes—the narrative of American resurgence gains traction, positioning the White House for political leverage in upcoming midterm battles.
