Squawk on the Street Jobs Tuesday: NEC Director Hassett on Employment Report, the Fed and AI 12/16/25
Dec 16, 2025
Kevin Hassett, former Chair of the Council of Economic Advisers and current Director of the National Economic Council, provides insights on the recent employment report, revealing surprising job growth despite a rising unemployment rate. He discusses the implications of Fed rate policy and inflation, while highlighting how AI is poised to enhance productivity and wages, mitigating job displacement concerns. Hassett also tackles onshoring trends, construction growth, and his prospects for becoming Fed chair, emphasizing necessary independence in monetary policy decisions.
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Private Sector Jobs On Trend
- Combine October and November jobs to see private-sector strength despite government cuts.
- Kevin Hassett says private job creation remains on trend and reflects supply-side gains.
Push Rate Cuts When Growth Is Supply-Led
- Advocate lower interest rates when growth is supply-driven rather than demand-driven.
- Kevin Hassett urges careful economic analysis before pushing for Fed rate cuts.
Deficit Drop Eases Inflation Pressure
- Tariffs, spending cuts and growth together have materially cut the deficit year-to-year.
- Hassett argues that deficit reduction eases inflationary pressures and allows lower rates.