Administration

Trump economic adviser: ‘Credit card spending is through the roof’

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by Sarah Davis - 05/06/26 6:26 PM ET

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by Sarah Davis - 05/06/26 6:26 PM ET

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One of President Trump’s economic advisers projected a “very, very strong” job market future in the U.S. on Wednesday, despite price hikes amid the Iran war.

“I had the head of one of the big five banks in my office yesterday going through credit card data … and credit card spending is through the roof,” Kevin Hassett told Fox Business’s Maria Bartiromo.

“They’re spending more on gasoline, but they’re spending more on everything else too,” he continued.

Hassett predicted a “very healthy, steady jobs picture” for the rest of the year.

Consumer spending increased by 1.7 percent in March from the previous month, with rising costs at the gas pump driving the majority of the change. Business at gas stations alone rose by 15.5 percent from February to March, according to a Commerce Department report.

The effective closure of the Strait of Hormuz since the beginning of the conflict between the U.S. and Iran at the end of February has sent global energy rates skyrocketing. The average cost of a gallon of standard gas in the U.S. was more than $4.50 on Wednesday — more than a dollar more than a year ago, according to AAA.

Gas prices in the U.S. reached the highest cost per gallon in four years at the end of April, when the price spiked to $4.18.

A study from the New York Federal Reserve published Wednesday found that these increased fuel prices are particularly having a negative effect on low-income households.

The report found that households earning less than $40,000 a year increased their spending on gasoline the least out of all income bracket groups, indicating that these consumers are buying less fuel to avoid the higher costs.

“Higher-income households have reduced real gas consumption only modestly and increased gasoline spending considerably compared with 2023,” the Fed researchers wrote in the report.

“In contrast, lower-income households increased spending by much less and decreased real consumption by much more, potentially by carpooling or substituting to public transit where available.”

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