Hassett: Trump Frequently Discusses Economy with Warsh, Did Not Offer Interest Rate Advice; U.S. Monthly Job Growth of 40,000 Sufficient for Balance
Complete. Here is the key summaryKevin Hassett, Director of the White House National Economic Council (NEC), stated that there is a "very close, long-standing relationship" between Trump and Warsh. He also noted that current U.S. job growth exceeds the equilibrium level of 40,000, and that he focuses almost exclusively on unemployment, which has declined
Recent "frequent calls" between Trump and Warsh have drawn attention, with some reports suggesting this is the latest sign of Trump's attempt to exert greater influence over the Federal Reserve. In an interview on Friday, Kevin Hassett, Director of the White House National Economic Council (NEC), stated plainly:
"I am certain that Trump did not provide Warsh with advice on the policy interest rate."
He indicated that there is a "very close, long-standing relationship" between Trump and Warsh, and that they frequently discuss economic issues.
Hassett also mentioned that he himself, along with Treasury Secretary Bessent, maintains communication with Warsh.
Friday's U.S. Non-Farm Employment data missed expectations, prompting a response from Hassett. He stated that the current U.S. labor market is more influenced by demographic changes, as the baby boomer generation retires, leading to a slight softening in the labor force participation rate.
Currently, the U.S. labor market needs to add approximately 40,000 jobs per month to remain in balance. Even after excluding government employment and World Cup-related factors, U.S. job growth still reached about 100,000, higher than the level required to maintain labor market stability. Hassett stated:
"I almost only focus on unemployment, and it has declined."
An official press release from the White House Council of Economic Advisers (CEA) in August 2019 stated that since Trump took office, the average monthly job growth over the past year was 187,000; the monthly average for 2019 through July was 165,000; and the monthly average for the full year of 2017 was 179,000. By the end of 2025, the average monthly increase in U.S. employment had fallen to approximately 53,000.
Regarding inflation, Hassett mentioned that he has noted high gasoline prices. Earlier this week, he publicly stated that recent reports showed excellent inflation data and that Warsh is driving positive changes.