Kevin Hassett, the director of the White House's National Economic Council, has claimed that rising consumer spending on fuel, groceries, and restaurants is proof that Americans are optimistic about the economy, even as independent data tells a different story.
Hassett made the remarks during a 1 June 2026 appearance onFox News Sunday, where anchor Shannon Bream confronted him with polling data showing widespread economic pessimism. Rather than address the figures, Hassett argued that increased consumer spending across the board was evidence of confidence. The comments landed against a backdrop of record-low consumer sentiment, surging fuel prices driven by the ongoing Iran conflict, and a Gallup survey recording the highest share of Americans reporting worsening finances since tracking began in 2001.
It is not the first time Hassett has made this case. As recently as late May, he made near-identical claims on Fox Business, drawing sharp criticism from economists and political commentators alike.
Hassett's Argument: Higher Bills Reflect Confidence
During the Fox News Sunday exchange, Bream pointed directly to declining confidence readings. 'The University of Michigan is one of them, I know there's another you prefer,' she said. 'They are both showing there's growing concern there. People are feeling, our polling shows too, their personal situation is not going well, and they blame President Trump's policies.'
Hassett's response, documented by Mediaite, was to dismiss the University of Michigan survey outright. 'First of all, the Michigan survey no longer has anything to do with the economy or economic sentiment,' he said. 'It's just a place where Democrats get to register how angry they are at President Trump.'
He then pivoted to consumer spending patterns as his preferred evidence of a healthy economy: 'One of the reasons is that people are spending more money on gas, but they're also spending more on everything else. Not just groceries, but restaurants, and so on. I think that's a sign you would see when people are optimistic about the future.'
Hassett: "People are spending more on gas, but they're also spending more on everything else -- not just groceries, but restaurants and so on. I think that's a sign you see when people are optimistic about the future." pic.twitter.com/MGTwnxsllt
— Aaron Rupar (@atrupar) May 31, 2026
Hassett made a version of the same argument days earlier on Fox Business, where he told anchor Maria Bartiromo that 'the consumer is really, really firing on all cylinders.' That appearance ended in an awkward juxtaposition: while Hassett was promoting the Conference Board's Consumer Confidence Index as the more reliable measure, that same organisation released data showing consumer confidence had fallen 0.7% in May, which its chief economist attributed to the 'inflationary impacts of the war in the Middle East.'
Consumer Sentiment Hits a Record Low
The University of Michigan's Consumer Sentiment Index, which Hassett has now publicly discredited on multiple occasions, dropped to a record low of 44.8 in May 2026, down from a preliminary estimate of 48.2 and marking the third consecutive monthly decline. The index had stood at 49.8 in April. The May reading represents a deterioration last seen in Gallup's most severe pandemic and recession-era surveys.
Separately, Gallup's annual Economy and Personal Finance survey, released 28 April 2026 and based on telephone interviews with 1,001 adults conducted 1-15 April, found that 55% of Americans described their financial situation as getting worse.
That figure is the highest recorded since the survey began in 2001, surpassing readings taken during both the 2008 financial crisis and the Covid-19 pandemic. It marks the fifth consecutive year in which more Americans reported deteriorating finances than improving ones.
The Gallup data also showed that 62% of respondents feared they would not have enough money for retirement, up three percentage points from a year earlier, and 28% were worried about making minimum credit card payments, an 11-point increase since 2021. Affordability ranked as the leading financial concern, cited by 31% of respondents as their primary problem, per the CBS News analysis of Gallup's findings.
Fuel Prices and the Iran Conflict Drive the Squeeze
Central to the current cost pressures is the sharp rise in petrol prices following the outbreak of the Iran conflict and the closure of the Strait of Hormuz in late February 2026. Per AAA fuel pricing data, the national average for a gallon of regular petrol peaked at £3.55 ($4.55) on 21 May 2026, compared with £2.31 ($2.96) on 26 February 2026, a rise of roughly 54% in under three months. By late May, the national average had eased slightly to £3.45 ($4.43).
California recorded the highest state average at £4.55 ($5.84) per gallon as of late March, with Hawaii and Washington also exceeding £3.90 ($5). The University of Michigan's May survey found that roughly one-third of respondents spontaneously cited fuel costs as a factor eroding their personal finances, and approximately 30% referenced tariffs as a concurrent pressure.
Year-ahead inflation expectations among consumers surveyed by Michigan edged up to 4.8% in May, from 4.7% the prior month, while long-run expectations climbed to 3.9% from 3.5%, indicating that Americans are not treating current prices as temporary. Hassett, for his part, had previously suggested that consumers should 'imagine' lower fuel prices, telling reporters in April that he was 'confident' the administration had a resolution, according to The Daily Beast.
The Debate Over Which Data to Believe
Hassett's repeated attacks on the University of Michigan survey have drawn scrutiny. On Fox Business, he told Bartiromo that the index was 'just a political survey,' citing what he described as a near-perfect correlation between the responses of Democrats and independents. His preferred alternative, the Conference Board's Consumer Confidence Index, did show higher numbers, but that defence collapsed the same morning it was made: as Hassett was speaking, the Conference Board released its May reading showing confidence had fallen.
Independent analysts note that the two surveys measure distinct things. Advisor Perspectives observed that the Michigan index is more focused on household finances and the impact of inflation, while the Conference Board's index is weighted toward employment conditions and job security. Both retreated in May 2026, with the Conference Board's reading falling to 93.1 and Michigan's dropping to its record low.
Hassett also appeared on ABC News' This Week on 31 May 2026, where he continued to downplay the anxiety captured by both surveys. The White House has yet to publicly release any internal economic modelling that supports the contention that higher spending on essentials reflects optimism rather than obligation.
For millions of Americans paying record prices at the pump and struggling to cover monthly bills, the distinction between spending more by choice and spending more out of necessity may be the most consequential economic question of the year.
