NEC Director Kevin Hassett Talks Jobs Numbers, AI

Summary

Bloomberg Talks: NEC Director Kevin Hassett Talks Jobs Numbers, AI

Date: May 8, 2026
Host: Dani Berger (Bloomberg)
Guest: Kevin Hassett (Director, White House National Economic Council)

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Episode Overview

In this episode, Bloomberg's Dani Berger interviews Kevin Hassett, Director of the White House National Economic Council, following the release of robust U.S. jobs numbers for April 2026. The conversation covers key economic themes: ongoing strength in the labor market, the impact of artificial intelligence (AI) on job creation, Federal Reserve dynamics, recent trade policy developments (including tariffs and negotiations with Europe and China), and U.S. government debt strategy.

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Key Topics & Discussion Points

1. U.S. Jobs Report: April 2026 Results

• Jobs Growth:
  • April jobs increased by 115,000, beating estimates and marking back-to-back monthly gains for the first time in nearly a year.
  • Hassett’s Reaction:
    • "Two months in a row now we've had blockbuster jobs numbers...pretty much it was green across the board." (00:48)
    • Initial unemployment claims are at their lowest since records began in the 1960s.
    • "The job market is really, really, really strong." (00:48)

2. AI’s Impact on Jobs

• AI & Sector-Specific Job Trends:
  • Berger notes job creation is mainly in healthcare, while financial and tech jobs are down—raising questions about AI's impact.
• Hassett’s Response:
  • Current data shows AI is "creating job creation," with growth primarily in AI-adjacent professions.
  • Recent studies (National Bureau of Economic Research, Stanford University) support the positive employment effect in adjacent fields.
  • Advice for Workers:
    • "The very, very best thing that you could do in order to protect yourself and protect your career is start to use AI tools yourself to make yourself more productive." (01:44)
• Medium- to Long-Term Concerns:
  • Hassett acknowledges concerns about AI automation's future impact but notes current displacement is not evident in the data.
  • Federal government is carefully studying AI’s workforce effects with five different policy work plans.
  • "The story the AI destroying people's jobs right now is not anywhere in the data but...once robots get better and better, then...we're going to have to have more policies to help people, you know, reskill and so on." (02:38)

3. Federal Reserve Policy & Rate Cuts

• Link Between Jobs Data and Rate Cuts:
  • Berger asks if strong labor data rules out Fed rate cuts.
• Hassett’s Economic View:
  • Strong job growth from supply-side expansion puts downward pressure on inflation.
  • Despite rising oil prices, core inflation remains stable, and wage data does not show signs of "runaway Phillips curve inflation."
  • Quote:
    • "When we have a strong supply side...there's downward pressure on inflation...Not anything that was a sign of the kind of runaway...inflation that should make the Fed want to lift rates." (03:32)
• On Fed’s Internal Dissent:
  • Berger references FOMC division after removing easing bias, mentioning four dissents (including Susan Collins).
• Hassett’s Outlook:
  • Expresses confidence in incoming Fed Chair Kevin Warsh's persuasive abilities and data-driven approach.
  • "A supply shock is a time when you don't have to lift rates just because you have high growth...we're really likely to see rate cuts this year because of Kevin Warsh." (04:37)

4. Trade Policy Updates

• Tariffs & Legal Rulings:
  • The Court of International Trade declared certain presidential tariffs unlawful.
• White House Response:
  • "We're studying all our options right now and Jameson Greer will have a message...probably later today." (05:27)
  • On maintaining tariffs: "I'm going to leave that to the trade lawyers for you." (05:38)
• Implications for U.S.-China/Europe Negotiations:
  • Hassett downplays the impact, citing strong legal basis for other authorities (301s, 232s).
  • Backup plans are in place to ensure trade policy continuity.
  • On Europe: President has set a July 4 deadline for agreement; Hassett expresses frustration that Europe hasn’t "kept up their end of the bargain," but expects resolution by deadline for a "pro-American, pro-worker trade deal." (07:03)

5. U.S. Government Debt and Fiscal Policy

• Managing Debt Loads:
  • Berger references DoubleLine's Jeffrey Gundlach, who speculated about possible unilateral debt restructuring or reduced coupons.
• Hassett’s Firm Rejection:
  • "There's not a chance in a million years that this administration would ever do anything that looks in any way like a debt default." (07:50)
  • Highlights deficit reduction, the lowest federal employment since WWII, and ongoing commitment to fiscal responsibility and a strong dollar.
  • No consideration for altering coupons or any restructuring beyond continued responsible governance.
  • "There's absolutely nothing that we're going to do other than be fiscally responsible." (08:43)

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Notable Quotes & Memorable Moments

• "Two months in a row now we've had blockbuster jobs numbers...it was green across the board... it's a roaring jobs market."
  —Kevin Hassett (00:48)

• "The very, very best thing...is start to use AI tools yourself to make yourself more productive. And that's what we're seeing in the data."
  —Kevin Hassett (01:44)

• On future AI risks:
  "We can imagine things, especially once robots get better and better, that then we're going to have to have, you know, more policies to help people, you know, reskill and so on."
  —Kevin Hassett (02:38)

• "When we have a strong supply side...there's downward pressure on inflation...nothing...that should make the Fed want to lift rates."
  —Kevin Hassett (03:32)

• "We're really likely to see rate cuts this year because of Kevin Warsh."
  —Kevin Hassett (04:37)

• On debt restructuring:
  "There's not a chance in a million years that this administration would ever do anything that looks in any way like a debt default."
  —Kevin Hassett (07:50)

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Key Timestamps

• 00:48: Hassett on strong jobs numbers and labor market strength
• 01:44: Discussion on AI's current positive impact on job creation
• 02:38: Hassett addresses need for future policy adaptations in response to AI
• 03:32: Hassett's assessment of Fed policy and inflation risk in the current climate
• 04:37: Federal Reserve dissent, predicted outlook for rate cuts
• 05:27: Legal challenge to tariffs and White House's pending response
• 07:03: Trade talks with Europe and July 4 deadline
• 07:50: Hassett’s unequivocal stance against debt default or restructuring

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Episode Flow & Tone

The conversation is brisk, data-driven, and politically confident, with Hassett consistently emphasizing the administration’s proactive approach to jobs, AI’s role as a net creator (not destroyer) of employment for now, prudent trade negotiation strategies, and unwavering fiscal responsibility regarding U.S. debt—offering reassurance to both markets and the broader public.

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For listeners interested in the intersection of jobs, technology, global trade, and fiscal policy, this episode provides a clear, timely snapshot of the administration's current economic outlook and priorities.

Transcript

[Dani Berger]

Indiana University strengthens tomorrow's workforce with practical real world experience. IU grads make a difference in your community, serving as teachers, nurses and engineers who rise to tomorrow's challenges and meet them. Learn more at iu.edu impact

[Narrator/Announcer]

Bloomberg Audio

[Dani Berger]

Studios Podcasts Radio News we welcome our Bloomberg TV and radio audience. I'm Dani Berger and we saw US jobs jumping 115 and in April it beats estimates marking the first back to back gain in nearly a year. Joining us now, I'm pleased to say is the White House Director of Economic National Economic Council, Kevin Hassett. Director Hassett, thank you so much for joining A strong jobs number A beat. Let me just get your initial reaction right.

[Kevin Hassett]

Well you know, two months in a row now we've had blockbuster jobs numbers. And the really interesting thing is that we look at these things that you guys do too, I'm sure called heat maps where you look by category like where's the green and where's the red? And pretty much it was green across the board. And so what it means is it's a roaring jobs market and it's completely consistent with what we saw with the claims data just a few days ago. Right. Like initial claims for unemployment insurance right now are the lowest since we've ever been counting them all the way back to the 1960s. And so the job market is really, really, really strong.

[Dani Berger]

Kevin Part of the issue though that people would focus to focus on is the fact that the jobs creation is narrow. It's an issues like health care. Meanwhile we saw financial jobs down, tech jobs down. These are exactly the type of categories you would expect if is having an impact on jobs in this economy. Is there a plan from this administration to combat job loss over AI's impact?

[Kevin Hassett]

Well, right now what we're seeing is the AI is creating job creation. There are a couple of new studies out at the National Bureau of Economic Research that show and one at Stanford University that show that AI adjacent jobs, that adjacent professions are actually increasing faster than everywhere else. But of course in the medium to long term people are right to be concerned about what might I mean for them. But right now the very, very best thing that you could do in order to protect yourself and protect your career is start to use AI tools yourself to make yourself more productive. And that's what we're seeing in the data, I guess.

[Dani Berger]

Kevin, will there be a point where the White House needs to address this? I've talked to many, many people who say that 2028, the election will be centered around AI and what politicians are saying about it, you're already seeing hints of it in 2026. Does there need to be a clear plan going forward if there are huge economic consequences of what AI does?

[Kevin Hassett]

Oh, absolutely. It's something that's being very, very careful stud carefully studied by all of government. We've got five different work plans depending on which direction we're going, what topic it is, whether it's AI in the workforce and security and so on. And these have been underway since President Trump took office. Really. And so absolutely we are working through policy options as we watch the data evolve. But right now we're sure to see the adjacent jobs are the ones that are growing the fastest. And so the story the AI destroying people's jobs right now is not anywhere in the data but we can imagine, we can imagine things, especially once robots get better and better, that then we're going to have to have, you know, more policies to help people, you know, reskill and so on.

[Dani Berger]

So in the meantime, as you say the figures are strong for this jobs market. Doesn't that essentially kill any hopes of a rate cut this year?

[Kevin Hassett]

You know, for, for me, I think that when we have a strong supply side stock then that means that there's downward pressure on inflation and that's what we' seeing. And in fact even with the oil prices going up, excuse me for the big truck running by me, even, even with the oil prices going up, you saw core inflation remain stable and you can even see that in the wage data in today jobs report where there were there are strong wage growth but not anything that was a sign of the kind of runaway Phillips curve inflation that should make the Fed want to lift rates.

[Dani Berger]

Well, I suppose Kevin, last time you were on the show last Friday after the CPI report you mentioned that you were looking forward to a wash Fed chair because of the independence it would to the Fed. Since then we've learned more about the dissents coming from the FOMC that one of the language of the statement changed to take out any bias, any sort of easing bias. It was three dissents. You can make that four if you have Susan Collins adding as she spoke to Bloomberg saying that she agreed with that idea. Do you think that this is an fomc at least those four members that are gearing up to push back against a wash Fed chair?

[Kevin Hassett]

Well, I can tell you you speak specifically about Susan Collins. I've known her since graduate school. She's an A plus econom to goes where the evidence leads disappointed that these people made the decision that they did. But I'm sure that when Kevin was his Fed chair, that he'll have lots of people that will be open to argument and open to evidence, and he's a very persuasive guy. I think Kevin believes, as I do, that a supply shock is a time when you don't have to lift rates just because you have high growth. And I think that he'll bring lots of evidence to bear and convince his colleagues. So I think we're really likely to see rate cuts this year because of Kevin Warsh.

[Dani Berger]

Elsewhere, Director, last night the Court of International Trade once again declared unlawful president's tariffs, this time the 122 duties on imports. When does the administration plan to appeal this?

[Kevin Hassett]

Well, you know, I think that we're studying all our options right now and Jameson Greer will have a message on that probably later today.

[Dani Berger]

Are there, are there any mechanisms in mind to keep those tariffs in place or any other stopgap measures?

[Kevin Hassett]

I'm going to leave that to the trade lawyers for you.

[Dani Berger]

Okay, fine. I guess there is this bigger question then, if we're going to leave that part to the trade lawyers. But the economic talks with China, then does this put the White House at a disadvantage as the President goes to have those discussions with Xi next week?

[Kevin Hassett]

You know, I don't think so. First of all, that this affects, you know, one corner of the trade policy. The strategy really is to finalize the deals that we have negotiated over the last year with 301s and 232s to authorities that are basically ironclad in the courts. And so the job has always been for Jameson Greer and to get ready to sort of finalize the deals with these much stronger authorities. We believe the IEA authority that we originally used was a solid authority and disagree with the court's decision that is forcing us to refund the tariffs. But we have a backup plan that is going to make sure that the President's trade policy is made a reality very, very shortly.

[Dani Berger]

Okay, so a backup plan. Might we expect to hear something today, Director Hassett?

[Kevin Hassett]

Excuse me. Oh, from Jameson Greer.

[Dani Berger]

Yes.

[Kevin Hassett]

You have to talk to him.

[Dani Berger]

Okay, okay, fair enough.

[Kevin Hassett]

I spoke with him yesterday about it.

[Dani Berger]

Okay. I know it is. It is fresh news. But again, to your point, the White House always looking for alternatives. What about when it comes to the Europeans? The president sent this July 4 deadline to reach some sort of agreement. Does this also complicate things?

[Kevin Hassett]

Well, I don't know if it complicates things. We've got lots of deep agreements with the Europeans and They haven't really kept up their end of the bargain and that has the President pretty frustrated. But my expectation is by the 4th of July that they will, and then we'll have these. This pro American, pro worker trade deal with Europe that has already been negotiated and agreed to.

[Dani Berger]

Director Hassan, before I let you go, there's been this outstanding question of the debt piles in the United States and what that means going forward and the need to service that debt. We heard from double lines Jeffrey Gundloch speaking to Bloomberg TV saying that he was positioning for a world in which the government unilaterally lowers coupled with coupons on existing US Debt in order to manage those internal costs. I just wonder what you think of that. Might that be the direction that we had?

[Kevin Hassett]

There's not a chance in a million years that this administration would ever do anything that looks in any way like a debt default. We believe in the strong dollar and we believe in a strong fiscal responsible government. And so that's why we reduced the deficit last year by hundreds of billions of dollars. We reduced federal employment by the most it's ever been reduced. Actually, there are fewer federal employees right now in the US Than there have been in any year since World War II. That's the kind of fiscal responsibility that lifts confidence in the debt. And you know, we're not done yet again with the growth that we're seeing, the growth that was echoed in the reports today and last month. You know, we absolutely are seeing the kind of growth you need, as you had in the 90s, to get the deficit under control. And that's our plan.

[Dani Berger]

So, of course, no way to do a debt default, but might you look at restructuring it again in this way? Maybe lowering the coupon, something like that?

[Kevin Hassett]

There's absolutely nothing that we're going to do other than be fiscally responsible.

[Dani Berger]

All right, Director Kevin Hassett, thank you so much for joining us. After that 115 beat on the jobs figures, that is the National Director of National Economic Council, Kevin Hassett. Thank you so much.

[Narrator/Announcer]

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