The National Economic Council (NEC) Director Kevin Hassett downplayed the growing concerns about the U.S. economy amid rising gas prices and inflation due to the ongoing Iran war, and urged Americans to look at the larger picture.

Speaking on ABC's "This Week" on Sunday, Hassett said, "What you need to do is smooth through the ups and downs, look at what's happening to real wages," he said.

Hassett highlighted the “really positive news” about the economy, stating that “real incomes, real wages are going up.” Despite the economic anxiety expressed by Americans, Hassett maintained that Americans will view their economic situation positively when making political decisions.

“And if they look at their wallets and look at how much money they have after, you know, the increase in prices, they're going to find that they have a lot more money," the Trump advisor said.

Although he acknowledged the strain high energy prices are causing, Hassett expressed optimism that the situation will soon improve. He dismissed a warning from Exxon Mobil ( XOM ) Senior Vice President Neil Chapman about potential spikes in oil prices due to low inventory, insisting that there is sufficient stock.

“We track inventories every day. We started out with billions, billions of barrels of private and government inventories, and we still are in the billions, and so there’s plenty of runway,” Hassett said.

K-Shaped Economy Deepens

Despite Hassett’s optimistic outlook, data reveal further nuances. The latest Bureau of Labor Statistics (BLS) data showed that wage growth lagged inflation in April, with wages rising 3.6% year-over-year compared with 3.8% inflation, indicating a slight decline in real purchasing power.

A report by the International Trade Union Confederation and Oxfam revealed that CEO pay surged 11% in 2025, while workers’ wages stagnated at 0.5%. The wealth gap in the U.S. is increasing, with the top 10% of U.S. households holding 93% of stocks in 2024.

Furthermore, a Gallup poll showed that Americans’ number one financial concern is the persistent cost increases across nearly every category of life. This is despite many households not being in immediate financial distress.

Adding to the economic anxiety, a study by the Federal Reserve Bank of New York found that lower-income households are experiencing increasing levels of food insecurity and economic stress. This trend is part of a “K-shaped economy,” where higher-income households continue benefiting from rising stock prices, while many lower-income Americans struggle with affordability pressures.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.