Kevin Hassett Assesses New Numbers And Explains How Trump Economy Has ‘Growth Without Inflation’

National Economic Council Director Kevin Hassett on Tuesday, citing fresh economic data, said President Donald Trump’s policies are producing strong growth without fueling inflation.

We’re getting growth without inflation, which is really proving both Reagan and Trump correct!

The Consumer Price Index (CPI) delivered positive news for the economy, with inflation easing to a 2.7% year-over-year increase in November from 3.0% in September, according to the Bureau of Labor Statistics. Hassett said on “Kudlow” that the economy is posting strong growth without triggering inflation, arguing the expansion is being driven by supply-side gains rather than government spending or monetary stimulus.

“If you see growth because the government is sending checks to everybody and the Fed is printing money, then that’s going to cause inflation. The Fed’s going to have to raise rates. But if you feel growth because of supply-side effects, then you can get the growth without the inflation. And that’s something that we’re seeing right now,” Hassett told guest host David Asman. “As you know, CPI came in with the core of 1.6% just last week. And so, we’re getting growth without inflation, which is really proving both Reagan and Trump correct.”

Hassett said Trump’s economic approach combines pro-growth tax policy with rising productivity driven by artificial intelligence.

“So what happened with the Reagan numbers is an example, but there was a second example. So, Reagan did it with tax policy. And then it happened in the late ‘90s, really, because computers made everybody more productive,” Hassett said. “The thing about what President Trump intuits, which is true, is that we’ve got both of those. So we’ve got artificial intelligence increasing productivity. And we’ve got amazing tax policy as well. And so, there’s a chance that we get to numbers north of even what you’ve seen without inflation.”

In the early months of Trump’s second term, Democrats attacked him over high prices—especially eggs, which doubled from November 2023 to March 2025 after a bird flu outbreak prompted the culling of tens of millions of chickens, according to the St. Louis Federal Reserve Bank. Trump defended his economic agenda in a Wednesday night speech, while a White House fact sheet pointed to lower prices for fresh fruit, butter, ice cream, shampoo and toilet paper and cited falling gas prices.

Inflation surged during the Biden administration, with the CPI peaking at a four-decade high of 9% in June 2022.