Margaret Brennan pushes White House economic chief on whether inflation truly stopped; his answer reveals what’s really happening in 2026

Margaret Brennan pressed White House National Economic Council Director Kevin Hassett on inflation slowdown and tariff outlook during today’s Face the Nation interview. The discussion centered on recent inflation data showing 2.7% year-over-year growth, down from expectations, and what it means for 2026 economic policy.

Inflation Data Shows Unexpected Slowdown Amid Market Skepticism

Margaret Brennan opened her questioning about recent inflation numbers released this week. The November Consumer Price Index came in at 2.7% year-over-year, a slowdown from predictions. Hassett emphasized that core inflation measured on a three-month moving average stands at just 1.6% annually, below the Federal Reserve’s 2% target.

However, Brennan pressed Hassett on data quirks, noting that Black Friday discounts were already reflected in the November survey and housing costs showed no increase in the report. She questioned why the White House was suddenly trusting inflation data when administration officials had previously questioned economic statistics. Hassett acknowledged data always requires scrutiny but argued the three-month moving average provides the clearest picture.

When Brennan pointed out that President confirmed inflation had stopped entirely, Hassett responded that inflation above target levels has stopped, but inflation isn’t zero. The distinction appeared important for calibrating public expectations heading into 2026.

Jobs Report Misses Expectations Despite Administration Optimism

The conversation shifted to employment data, where 64,000 jobs were added in the latest survey, with unemployment climbing to 4.6%. Economists had warned of a “hiring recession” with very few jobs added since spring and slowing wage gains. Hassett rejected this characterization, arguing the number was roughly market expectations and that job growth remains healthy in context.

Hassett highlighted previous statements from Federal Reserve Governor Austan Goolsbee, who acknowledged inflation running hotter than expected and indicated the Fed should have cut rates faster. This suggested room for additional rate cuts in 2026. The jobs report, combined with inflation data, presents a mixed but generally optimistic picture for the administration, though labor market momentum shows signs of cooling.

Economic Metric	Latest Data
Core Inflation (3-month avg)	1.6% annual rate
Jobs Added	64,000 in latest report
Unemployment Rate	4.6%
Year-over-Year CPI	2.7%

Tariff Strategy Defended as Most Will Remain Through 2026

Brennan then questioned the future of tariffs under discussion for 2026. Hassett defended the tariff strategy, claiming most tariffs implemented in 2025 have been successful. He cited high economic growth despite tariff implementation, trade deficit reduction, and historically low China imports as evidence. The administration maintains that tariffs are achieving strategic goals without killing growth.

Hassett acknowledged that some tariff adjustments may occur. The administration has already exempted coffee imports, recognizing limited domestic production. He indicated Jamieson Greer, the lead negotiator, is studying which tariffs could be adjusted or eliminated based on domestic production capacity or climate considerations. This suggests flexibility at the margins while maintaining core tariff policy.

The question of potential Supreme Court challenges to tariff authority under IEEPA came up, with Hassett expressing confidence the Court will rule in the administration’s favor. He suggested that even if the Court ruled against the administration, widespread refunds to consumers would prove administratively complicated, making such rulings unlikely.

“Most of the tariffs that we’ve passed this year have proven their mettle. We’ve got still high growth, which people said we couldn’t if we had tariffs.”

— Kevin Hassett, National Economic Council Director

Labor Market Adjustments Continue Amid Immigration Policy Changes

Brennan raised concerns about the impact of immigration policy changes on the labor market. The business community, notably the Associated General Contractors of America, has expressed concern about losing foreign-born workers and difficulty filling construction positions. The U.S. workforce reportedly lost more than 1 million foreign-born workers in the past year.

Hassett countered that native-born workers gained over 2 million jobs during the same period, with the majority going to Hispanic Americans. He cited construction wage increases of $3,300 on average, suggesting market forces are attracting workers back to higher-paying positions. This wage growth demonstrates how labor scarcity can drive compensation upward, though construction industry leaders dispute whether native-born recruitment fully replaces lost foreign labor.

Are tariffs here to stay, and what does that mean for household costs going into 2026?

The interview concluded with questions about the permanence of tariff policy and implications for household budgets. Margaret Brennan sought clarity on whether tariffs would persist through 2026 and whether $2,000 household checks discussed since July would materialize. Hassett indicated the administration would propose tariff-funded checks to Congress, pending legislative approval, but emphasized that multiple revenue sources could fund such an initiative.

The conversation reflected ongoing debate over whether tariff policy balances growth benefits against consumer costs. With inflation data showing progress but with caveats about data quality, and labor markets showing mixed signals, the economic backdrop for 2026 remains complex. The administration’s confident messaging about controlling inflation while maintaining growth will face reality checks as new economic data arrives and tariff impacts continue reverberating through supply chains and consumer prices.