Director of the National Economic Council at the White House, Kevin Hassett, said that real wages in the United States are rising, noting that what he described as a “positive improvement” in the economy is not receiving sufficient attention from public opinion.
Hassett explained in an interview with ABC News that real income and wages are rising, stressing that citizens will evaluate their economic conditions based on what remains in their pockets after calculating prices.
However, recent data issued by the US Bureau of Labor Statistics showed that wage growth during the month of April did not keep pace with inflation rates, as wages rose by 3.6% on an annual basis, while the inflation rate reached 3.8%.
On the other hand, opinion polls showed a decline in Americans’ confidence in the economy, as the economic confidence index in the Gallup poll recorded its lowest levels since October 2022, and the Consumer Confidence Index at the University of Michigan declined for the third month in a row to reach the lowest level on record, with a 10% decline since April.
During the interview, Hassett acknowledged the pressure on consumers as a result of rising energy prices, expressing his hope that these pressures will ease soon, in light of the continuing tensions in the Middle East region and their impact on oil markets.
When asked about warnings about a possible rise in oil prices due to a decline in global inventories, Hassett said that official data indicates the availability of sufficient reserves, stressing that inventories “are still at billion-dollar levels” and that the situation does not indicate an imminent shortage.
