Fox host Maria Bartiromo confronts President Donald Trump’s economic policy advisor Kevin Hassett on ‘way lower than expected’ US economic growth

Fox Business host Maria Bartiromo confronted one of President Donald Trump’s top economic policy advisers over disappointing second-quarter growth figures, pressing the administration to explain why the U.S. economy fell well short of earlier expectations. Kevin Hassett, director of the National Economic Council, defended the Trump administration’s economic record, arguing that broader measures of domestic demand paint a much stronger picture than the headline GDP figure. The exchange comes as the economy remains a central political issue ahead of November’s midterm elections, with inflation, consumer costs and economic uncertainty topping the list of voter concerns.

Maria Bartiromo presses Kevin Hassett over weaker GDP growth

During an appearance on Mornings with Maria, Bartiromo reminded Hassett of his earlier projection that the U.S. economy would expand at a 4% pace during the second half of the year. “Last time we spoke, you told me you were expecting 4% growth in the second half of the year,” Bartiromo said. “We got a growth number yesterday, but it was way lower than people expected. How would you assess the macro story today?”

According to the Bureau of Economic Analysis (BEA), GDP grew at an annualized rate of 1.5% in the second quarter, down from 2.1% in the first quarter. The BEA attributed the slowdown to declines in government spending and slower investment and export growth, partly offset by stronger consumer spending.

Kevin Hassett argues lower headline GDP figure reflects surge in imports

In response, Hassett rejected the suggestion that the economy is underperforming, pointing instead to real final sales to private domestic purchasers, a measure that combines consumer spending and private fixed investment. “Final sales within the U.S. were about 4 percent actually, almost exactly the number we talked about, 3.9 percent,” Hassett said.

He argued the lower headline GDP figure reflects a surge in imports tied to business investment. “We imported so many capital goods … [while] building factories so fast, that the number was different than expected by a little bit,” he said. Hassett’s claims were supported by the BEA, which reported that imports, which reduce GDP in national accounting, increased during the quarter. Real final sales to private domestic purchasers accelerated from 1.7% in the first quarter to 3.9% in the second.

Hassett also cited investment and inflation data as evidence the economy remains healthy. “The surging capital spending, which means there’s downward pressure on inflation because there’s upward pressure on supply, plus CPI and PCE, those two reports were about as good as you hope to see if you’re a federal reserve governor,” he said. “It means the economy is really running on all cylinders.”

Inflation and manufacturing remain areas of concern

Despite the National Economic Council director’s optimism, several economic indicators continue to raise concerns. For starters, manufacturing construction spending fell to $173.6 billion in May from $175.9 billion in April and was down sharply from $222.5 billion in May 2025, according to Census Bureau data. Manufacturing employment has remained relatively stable at around 12.6 million workers, according to the Federal Reserve Bank of St. Louis.

Inflation also remains above the Federal Reserve’s long-term 2% target. The BEA reported that the Personal Consumption Expenditures (PCE) price index rose at an annualized 5.1% in the second quarter, while core PCE increased 3.4%. Separately, the Bureau of Labor Statistics reported the Consumer Price Index (CPI) stood at 3.5% in June, with energy prices rising 15.7%.

Jeffrey Frankel, James W. Harpel Professor of Capital Formation and Growth at Harvard University’s Kennedy School, disputed Hassett’s optimistic assessment. “Contrary to what Kevin Hasset apparently said, [inflation] is clearly too high, whether from the perspective of American households or the Federal Reserve Governors,” Frankel told Newsweek.

Donald Trump continues to defend economic record despite plummeting approval

During his 2024 presidential campaign, Trump pledged to lower prices, curb inflation and improve Americans’ financial well-being. Last month, he described the U.S. economy as the strongest in the nation’s history, citing employment gains and stock market performance. However, many Americans remain concerned about everyday costs. AAA reports the national average price for regular gasoline has climbed from $3.15 per gallon a year ago to $4.10, driven in part by disruptions linked to the Iran war and instability around the Strait of Hormuz and the Bab el-Mandeb shipping corridor.

Recent polling reflects those concerns, as a CBS News survey conducted June 17 to June 19 found 34% approved of Trump’s handling of the economy while 66% disapproved. An NPR/PBS News/Marist poll conducted June 8 to June 11 similarly found 33% approved and 60% disapproved, marking Trump’s lowest economic approval rating in Marist polling since 2019.