White House economic chief reveals why Americans aren't feeling optimistic about economy

The White House says it is struggling to explain why Americans feel gloomy about the economy even as they keep spending. Kevin Hassett, director of the White House National Economic Council, told Fox Business host Stuart Varney that the administration puzzles over the gap daily, since business investment is surging at a pace he said has no precedent.

The Bureau of Labor Statistics said consumer prices climbed 0.6% in the month and stand 3.7% above their level a year earlier. Hassett blamed part of the jump on strikes against energy infrastructure in the Middle East and said prices in other categories were steadier.

On mortgage rates, Hassett said faster income growth and cooling inflation could eventually make housing more affordable, but he urged patience: one month of numbers is not enough to decide whether the Fed should act. He said bankers have told him borrowers are buying goods and keeping up with their payments. Worries about job security, he argued, can depress confidence regardless. He forecast a robust holiday shopping season and said that "the strength of the economy is visible."

Summarized by PolitiKool from Fox Business’s reporting. Read the full story at Fox Business →