White House National Economic Council Director Kevin Hassett is expecting inflation to fall further by the end of the year as energy prices ease and economic growth continues to accelerate.
Hassett joined FOX Business’ Maria Bartiromo on "Mornings with Maria" to discuss inflation, energy prices, artificial intelligence investment and the broader outlook for the U.S. economy.
Hassett pointed to falling Treasury yields and what he described as strong underlying economic momentum as signs that inflation pressures could continue easing in the months ahead. He argued that lower oil prices would likely have an immediate impact on consumers and businesses if disruptions tied to the Strait of Hormuz ease.
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"Core inflation is already just a smidge above target… top line inflation is going to go down as soon as we get the straits open," Hassett said.
"And it's going to go down a lot."
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His comments come as investors continue watching energy markets and Federal Reserve policy closely following volatility tied to tensions in the Middle East. Oil prices and inflation concerns have remained central issues for consumers ahead of the 2026 midterm election cycle, particularly as Americans continue to face elevated costs for groceries, housing and insurance.
Hassett reiterated that the administration remains focused on affordability and argued that investments tied to artificial intelligence, manufacturing and domestic energy production are helping strengthen the broader economy.