Hassett Says U.S. Should Not Use Inflation to Reduce Its Debt

The White House National Economic Council director said the United States does not want to use inflation to reduce its debt burden and called the current level of interest payments unacceptable.

Hassett said the president is serious about reducing the deficit, U.S. bond yields rose because the economy is strong, and he respects the Federal Reserve’s independence.

Data showed consumer spending was very strong, and Hassett expected it to remain strong during the holiday season. He said Kevin Warsh still needs to address the situation left by Federal Reserve Chair Jerome Powell, describing it as “very unusual.”