White House National Economic Council Director Kevin Hassett has downplayed concerns that Trump's proposed $5,000 rebate could worsen government debt. In an interview on Thursday, Hassett stated, "We can do this in a fiscally responsible way. This is a serious proposal." He added, "Because the U.S. economy is growing robustly and generating considerable wealth, the President believes we need to return a greater share of that to the American people."
Hassett mentioned that one potential avenue is through the budget reconciliation process. This legislative mechanism allows the party controlling majorities in both the House and Senate to advance fiscal packages without needing votes from the opposition. When pressed on what measures could offset the fiscal impact of distributing the checks, Hassett indicated that it would require "consultation with Congress."
Earlier this week, Trump floated the idea of sending $5,000 checks to every adult U.S. citizen, provided Republicans retain their Congressional majorities. Hassett remarked, "There are multiple ways to get this done. Don't underestimate President Trump."
Analysts remain skeptical about whether the $5,000 check will ultimately materialize, especially since senior Republican lawmakers in both chambers have reacted coolly to the concept. Additionally, on Friday, Hassett noted that while the August consumer price index showed faster price increases, inflation is still decelerating based on the three-month trend. When asked if this could prompt the Federal Reserve to raise interest rates next week, Hassett said, "I suspect if the Fed makes a major move, the President will have something to say about it."