• National Economic Council Director Kevin Hassett says inflation outlook is "really good" following better-than-expected CPI data.
  • The White House is actively exploring measures to address housing affordability as part of broader cost-of-living initiatives.
  • Economic momentum faces headwinds from an ongoing government shutdown that could negatively impact Q4 GDP.

National Economic Council Director Kevin Hassett expressed strong optimism about the inflation trajectory in recent remarks, describing the outlook as "really good" after Consumer Price Index data came in below expectations. The latest figures show annual inflation has dropped significantly from nearly 4% in January 2025 to the mid-2% range as of November, moving closer to the Federal Reserve's 2% target.

"We're seeing a trajectory that usually has momentum," Hassett noted, suggesting the disinflationary trend appears sustainable. The comments from the White House's top economic adviser signal growing confidence within the administration that the worst of the inflation surge that plagued the economy in 2021-2022 may finally be receding.

The positive assessment comes despite acknowledging the ongoing impact of tariffs, which Hassett characterized as a "one-time level adjust" rather than a persistent inflationary pressure. Import prices have actually declined recently as producers in countries like China have reduced prices to maintain their U.S. market share, according to people familiar with trade data.

However, the encouraging inflation news is tempered by the economic disruption caused by the ongoing government shutdown. Administration officials are privately concerned the shutdown could drag down fourth-quarter GDP growth, with some estimates suggesting it has already cost the economy 1.5% of GDP. If the impasse continues through the critical holiday shopping season, it could potentially push Q4 growth into negative territory.

Behind the scenes, the White House is exploring various housing affordability measures as part of a broader effort to address living costs. While specific proposals remain under discussion, officials acknowledge that high housing costs continue to pressure household budgets even as overall inflation moderates.

The administration has been working to navigate legal constraints under the Antideficiency Act to maintain critical payments, including military pay and SNAP benefits, during the shutdown. Legal debates continue over the scope of permissible spending during the funding lapse.

Market participants have largely welcomed the inflation data but remain cautious about the shutdown's economic impact. "The inflation picture is clearly improving, but the shutdown creates uncertainty that could undermine consumer confidence," said one market strategist who asked not to be named while discussing sensitive economic conditions.

Efforts to reach the National Economic Council for additional comment on the timing of potential housing initiatives were unsuccessful.

Correction: An earlier version of this article misstated the current inflation rate. It is in the mid-2% range as of November 2025, not the low-2% range.