White House economic adviser Kevin Hassett stated that stronger-than-expected U.S. economic growth data released Tuesday reflects the success of President Trump's trade policies and investments in artificial intelligence (AI), signaling accelerated job growth ahead.
Hassett remarked in an interview, "This is truly an outstanding number—a great Christmas gift for the American people." He added, "The economic recovery is indeed taking off, with many previously sidelined individuals now entering the labor market... If we maintain GDP growth around 4% heading into the new year, we could see monthly nonfarm payroll gains return to the 100,000–150,000 range."
Data showed U.S. GDP grew at an annualized rate of 4.3% in Q3 2025, up from 3.8% in Q2 and surpassing market expectations of 3.3%. The Commerce Department attributed the acceleration to stronger consumer spending, increased exports, and higher government expenditures. Personal consumption expenditures (accounting for 70% of GDP) rose 3.5%, while government spending and investment grew 2.2%, and exports surged 8.8%. However, nonresidential fixed investment—a gauge of business spending—slowed sharply to 2.8% from 7.3% in Q2.
On employment, monthly nonfarm payroll gains have declined significantly this year, continuing into Q4. Economists link this trend to reduced immigration under Trump's stricter controls and softening labor demand. November's payrolls rose by 64,000, following October's 105,000 drop. Separately, December consumer confidence deteriorated due to job and income concerns, though Hassett dismissed the pessimism, noting such sentiment often diverges from actual economic performance. He highlighted reasons for optimism, including easing inflation and wage growth.
As one of four final candidates Trump is considering to succeed Fed Chair Powell, Hassett reiterated calls for policy rate cuts, arguing AI-driven productivity gains will suppress inflation. "Compared to global central banks, the U.S. is far behind the curve on rate reductions," he said.
