Hassett: US jobs data points to strong consumer

During an appearance on Bloomberg TV, White House NEC Director Kevin Hassett spoke about the jobs report and the economic outlook of the administration.

• The jobs figures were largely as expected, and the data indicate a very robust consumer.
• He anticipates a strong period of holiday spending.
• The administration upholds the Federal Reserve's independence.
• Higher bond yields, he said, are due to the economy's strength.
• The current interest payments by the government are too high and unacceptable.
• President Trump is dedicated to cutting the deficit.
• The administration does not intend to erode the real value of its debt via inflation.
• The unusual situation between Fed Chair Warsh and Powell was noted by Hassett.

Hassett's comments are naturally optimistic. The administration believes consumers will keep spending and that this momentum will last through the holidays. Additionally, he frames higher yields as a sign of economic strength.

However, higher yields also raise the cost of financing government debt. Deficit reduction could ease that load, but traders will be looking for concrete policy steps. The critical economic issue is whether consumers can keep spending if job growth remains weak and yields continue climbing.