<div id="readability-page-1">Wall Street’s rally is increasingly being tied to a mix of artificial intelligence investment, corporate tax incentives and a wave of factory construction reshaping the U.S. economy. White House National Economic Council Director Kevin Hassett joined FOX Business’ Maria Bartiromo on &#34;Mornings with Maria&#34; to discuss why he believes the economy is entering a new growth phase driven by capital spending, AI productivity gains and tax policies aimed at accelerating domestic manufacturing.<div><div> <img src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2026/05/931/523/white-house-economist-kevin-hassett.png/query-dGw9MSZ2ZT0x?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="931" height="523" original-src="https://imageproxy.pbkrs.com/https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2026/05/931/523/white-house-economist-kevin-hassett.png/query-dGw9MSZ2ZT0x"/></div> White House National Economic Council Director Kevin Hassett. (Al Drago/Bloomberg)</div> &#34;The bottom line is that there's an AI productivity boom which is feeding through to an earnings boom,&#34; Hassett said. The comments come as companies pour billions into U.S.-based expansion projects tied to semiconductors, artificial intelligence infrastructure and advanced manufacturing. Hassett pointed to major investments from multinational firms, including Novartis and Taiwan Semiconductor Manufacturing Company, also known as TSMC, as signs the U.S. has become &#34;the hot place to be right now.&#34;MARKET EXPERT SAYS POTENTIAL FED RATE CUTS COULD SPARK ‘ONE OF THE BIGGEST EXPLOSIONS’ IN US ECONOMYThe administration’s push to restore full expensing and bonus depreciation for factory construction and equipment has also sparked a rush to build projects before key tax incentives expire.&#34;There's a race unlike anything we've ever seen to create jobs in America right now,&#34; Hassett said.PRIVATE SECTOR ADDED 109,000 JOBS IN APRIL, ABOVE EXPECTATIONS, ADP SAYSHassett also predicted strong economic growth through the rest of the year, arguing that recent import data reflects long-term investment in manufacturing equipment rather than weaker domestic demand.&#34;I'm highly confident that we're going to be looking at 4% numbers for the rest of the year,&#34; Hassett said. &#34;I personally would make a bet on it with my friends.&#34;GET FOX BUSINESS ON THE GO BY CLICKING HERE</div>

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Wall Street's rally is linked to AI investment, corporate tax incentives, and factory construction reshaping the U.S. economy. Kevin Hassett, White House National Economic Council Director, believes the economy is entering a growth phase driven by capital spending and AI productivity gains. Major investments from firms like Novartis and TSMC highlight the U.S. as a key location for expansion. Hassett predicts strong economic growth, with job creation at unprecedented levels, and expects 4% growth for the rest of the year.

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Top economist says race to create US jobs unlike anything seen before