Kevin Hassett on Trump Ending Canada Trade Talks, Inflation, and US Economy

Government Shutdown Stalemate

• ⚠️ Kevin Hassett suggests that moderate Democrats are using the "No Kings rally" as an excuse to keep the government closed, rather than negotiating in good faith.
• 💡 The hope was that post-rally, Democrats would negotiate, but it appears they intend to prolong the shutdown.

Inflation Report and Federal Reserve

• 📊 The Consumer Price Index (CPI) report showed prices up 3% year-over-year, a slight decrease from August and below expectations.
• ⛽ A significant refinery shutdown temporarily increased gas prices, but overall inflation is expected to decelerate as gas prices fall, easing pressure on the Federal Reserve.

Trade Talks with Canada

• 🚫 President Trump has called off trade talks with Canada due to frustration with the progress and the Canadians' behavior and positions.
• ⏱️ Hassett views this as a potential "timeout" due to frustration, suggesting that talks may resume later.

US Economic Strength

• 📈 The US economy is showing strong growth, with Q2 GDP near 4% and private indicators suggesting a robust economy.
• 🏭 Uncertainty over tariffs is paradoxically driving businesses to onshore production, leading to increased investment and job growth.
• 💰 Retail sales are up significantly, indicating consumers have money and are spending, while industrial production is at an all-time high.
• 🎯 Hassett posits that the economy is performing so well that Democrats may be trying to slow down President Trump's success by seeking out failures.