A senior Trump official has sparked controversy by boasting that Americans' credit card spending is 'through the roof,' even as millions struggle with soaring living costs, high gas prices, a sluggish job market, and persistent inflation.
National Economic Council Director Kevin Hassett made the remark on Fox News on Wednesday, responding to a question about the jobs outlook. After claiming the jobs market would be 'very, very strong,' Hassett added: 'In fact, I had the head of one of the big five banks in my office yesterday going through the credit card data. And just as Secretary [Scott] Bessent said, credit card spending is through the roof. They're spending more on gasoline, but they're spending more on everything else, too.'
The backlash was immediate. Democratic Representative and House Minority Leader Hakeem Jeffries posted on X: 'Working class Americans are maxing out their credit cards to pay for groceries and gas. The Trump Cartel thinks this is something to celebrate. Shameful.'
California Democratic Governor Gavin Newsom's press office accused the administration of being out of touch, posting: 'The Trump administration is now CELEBRATING Americans paying more for gas and putting more on their credit cards.'
Social media users joined the outrage. One user, Unvarnished Tooth, asked: 'Any chance credit cards are being run up because take home pay doesn't cover everything any more? Can the Trump Admin be any more out-of-touch than they seemingly are?'
The administration has deployed senior officials across news networks to counter growing unpopularity over President Donald Trump's war with Iran, which has driven gas prices higher and pushed inflation from 2.4 percent in February to 3.3 percent in March. Recent polling shows 65 percent of Americans disapprove of Trump's handling of the economy.
Americans are burdened with $1.28 trillion in credit card debt, according to the Federal Reserve. The average interest rate on unpaid balances is 22.3 percent, one of the highest in 30 years.
Earlier this year, Trump considered capping credit card interest rates at 10 percent for one year, but banks pushed back, warning that a cap would restrict credit access and drive consumers to less-regulated alternatives. Experts believed credit card companies would find ways to offset revenue losses, negating any benefit to consumers.
A December study from Academy Bank found that roughly three-quarters of people use credit cards for essentials, medical bills, and routine living costs. A March study from the Century Foundation and Protect Borrowers revealed that about a third of the U.S. population could not pay their full credit card balance last year.
Last month, a Gallup poll showed that 55 percent of Americans believe their finances are worsening, a figure higher than during the pandemic or the 2008 Great Recession. Nonprofit financial wellness group Credit.org noted: 'At first glance, credit card use seems like a positive force in the economy. But when that spending is driven by credit card interest and unsustainable debt, it creates economic instability.'
