Hassett shrugs as credit cards fall behind at record

Kevin Hassett, Trump’s lead economic adviser, told Fox News Sunday that Americans are delinquent on credit cards because people are “spending more” and are optimistic. But he also acknowledged credit card CEOs are seeing “increased stress,” even as he insisted

On Fox News Sunday morning, President Donald Trump’s lead economic policy adviser, Kevin Hassett, tried to make Americans’ worsening finances sound like a sign of confidence.

When the host asked Hassett why people are delinquent on credit card payments at the highest rate in 15 years, Hassett didn’t lead with concern. He pointed instead to what people are buying.

“People are spending more on gas, but they’re also spending more on everything else — not just groceries, but restaurants and so on,” Hassett said. “I think that’s a sign you would see when people are optimistic about the future.”

He added that people typically spend less when they’re worried about job security or whether they can afford rent.

Credit card delinquency is one of the sharpest signals economists watch when household budgets come under pressure. In Hassett’s telling, however, delinquency sits alongside a bigger story of consumption — and optimism — even as other indicators point in the other direction.

Moody’s Analytics. in an analysis based on federal data. reported that the top 10 percent of earners were behind much of last year’s consumer spending. The report noted that. while Moody’s numbers have been questioned by some economists. the spending picture has been supported at the top by a surge in markets.

A roaring stock market has helped funnel money into the wealthiest households. The S&P has gained 25 percent since Trump returned to office. Data from the St. Louis Fed shows the richest 10 percent own more than 87 percent of all public equities and mutual funds. while the bottom half of US families own only about 1 percent of those assets.

That gap matters because it undercuts Hassett’s insistence that the spending behavior means people are broadly optimistic. Bureau of Labor Statistics data showing inflation is increasing faster than wages has not matched the administration’s message. President Trump has also dismissed the problem of affordability as a “hoax” and a “con job.”.

Hassett’s answer shifted again when the host pressed him on the credit-card stress itself. He said the administration speaks with the credit card industry closely.

“We talk to the CEOs of the credit card companies all the time. and we do see some increased stress. ” Hassett said. But he then drew a bright line between that stress and any danger to the companies. “There’s not any kind of financial threat to the credit card companies. People are taking a bit longer.”.

For Americans who are falling behind. the distinction may sound academic: longer payment timelines still mean more households are running out of room. Hassett’s argument — that delinquency is happening alongside spending because people feel better about the future — lands uneasily in a moment when credit cards are reportedly being used for necessities.

The underlying tension is stark. Hassett framed the delinquencies as compatible with optimism and broader spending. Yet the numbers on delinquency — described as the highest in 15 years — and the administration’s downplaying of inflation and wages leave many struggling to cover daily costs with the sense that someone in power isn’t taking their crisis seriously.

Kevin Hassett National Economic Council Donald Trump credit card delinquency inflation wages Bureau of Labor Statistics Moody’s Analytics S&P 25 percent gain St. Louis Fed equities mutual funds ownership