Kevin Hassett Says Trump’s Trade War Is Worth the Cost
For an official in the Trump administration, Kevin Hassett had a long tenure: A well-known GOP economist and former scholar at the American Enterprise Institute, he spent roughly two years as the chairman of the Council of Economic Advisers, or CEA, which counsels the West Wing. Hassett is a free-trade devotee, but one who managed to stay on President Donald Trump’s good side, even as he escalated his trade war with China and tore up trade agreements. When Hassett announced his departure in June, Trump tweeted that he was a “true friend.”
In many ways, it was an auspicious time to leave. Since Hassett’s departure, things have been bumpy. The president’s beef with Federal Reserve Chair Jay Powell has ratcheted up. The yield curve inverted in mid-August, sparking fears of a recession. And so far, Trump’s trade war shows no sign of letting up. All of those factors have sent stock markets—and Americans’ 401(k)s—on more than a few stomach-dropping rides.
Despite his generally free-trade views, Hassett—who is now a CNN commentator—is all in on Trump’s trade war, telling me that regardless of the economic turbulence, “there’s a, went into effect. This interview has been edited for length and clarity.
