Published May 26, 2026, 12:13 p.m. EDT
Hassett pointed to falling Treasury yields and strong economic momentum as signs that inflationary pressures will ease. White House National Economic Advisor Council director Kevin Hassett expects inflation to fall further by the end of the year as energy prices fall and economic growth continues to accelerate.
Hassett joined FOX Business’ Maria Bartiromo on “Mornings with Maria” to discuss inflation, energy prices, investments in artificial intelligence and the broader outlook for the U.S. economy.
National Economic Council Director Kevin Hassett speaks during an executive order signing in the Oval Office of the White House. (Andrew Harnik/Getty Images)
Hassett pointed to falling Treasury yields and what he described as strong underlying economic momentum as signs that inflationary pressures could continue to ease in the coming months. He argued that falling oil prices would likely have an immediate impact on consumers and businesses if disruptions related to the Strait of Hormuz eased.
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“Underlying inflation is already slightly above target… Headline inflation will fall as soon as we open the straits,” Hassett said.
“And it’s going to go down a lot.”
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His comments come as investors continue to monitor energy markets and Federal Reserve Policy closely following the volatility linked to tensions in the Middle East. Oil prices and inflation concerns remain central issues for consumers heading into the 2026 midterm election cycle, especially as Americans continue to face high costs for groceries, housing and insurance.
Hassett reiterated that the administration remains focused on affordability and argued that artificial intelligence investmentsmanufacturing industry and domestic energy production help strengthen the economy as a whole.
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