Hassett: Non-farm payroll report "meets expectations," Hormuz is open, Trump is taking the deficit issue seriously.

White House National Economic Council Director Hassett made a series of statements on a range of economic issues on Friday, defending the latest non-farm payroll report and disclosing new developments in the energy sector, stating that the Navy has opened the Strait of Hormuz, crude oil is now allowed to pass normally, and more energy-related announcements will be released next week.

Hassett said he was "not disappointed" with the jobs report, emphasizing that government employment had declined while other sectors were seeing increases, adding that "our policies are working."

He also revealed that the White House is communicating with Europe regarding diesel supply, and that if Europe releases its strategic reserves, it will have a "huge impact," adding that he hopes to have relevant information "soon."

On the issue of interest rates and debt, Hassett acknowledged that current interest payments are "unacceptably high," but stressed that the White House respects the independence of the Federal Reserve, that President Trump is "serious about reducing the deficit," and made it clear that he "does not want to get rid of debt through inflation."

Data released by the U.S. Labor Department on Friday showed that nonfarm payrolls increased by only 29,000 in September, far below market expectations of 90,000 and below the lower end of all forecast ranges. The unemployment rate rose slightly to 4.2% from 4.1% in August.

Employment data "met expectations"

Hassett offered a positive assessment of the latest nonfarm payroll data, stating that the report was "in line with expectations" and explaining its structure: government employment declined while other sectors saw increases, indicating that "our policies are working."

He also stated that the current economic growth rate "is still hovering around 4%", and the overall fundamentals are sound.

He further pointed out that strong consumer confidence data suggests a "strong holiday season" is expected. Hassett attributed the strong housing data to the overall robust economy and stated that the White House "hopes for lower mortgage rates."

The Strait of Hormuz is open; an energy bulletin will be released next week.

Hassett made a more specific statement on the energy issue. He said the U.S. Navy has opened the Strait of Hormuz, and crude oil is being transported normally through the strait.

At the same time, he revealed that the White House is in communication with Europe regarding the diesel issue, and that if Europe releases its reserves, it will have a "huge impact," adding that he hopes there will be news soon.

He also previewed more energy sector announcements to be released next week, but did not disclose the specifics.

Yields, debt and the independence of the Federal Reserve

Facing market pressure from rising Treasury yields, Hassett attributed it to a strong economy, rather than a signal of rising fiscal risk premiums. He stated, "A strong economy is driving yields up."

On the issue of fiscal discipline, he was more direct, calling current interest payments "unacceptably high" and emphasizing that President Trump "takes deficit reduction seriously," while explicitly ruling out the path of diluting debt through inflation.

On the Federal Reserve, Hassett mentioned that Fed Chairman Warsh "demonstrated an understanding of supply and demand shocks," adding that Warsh will need to address the situation left by Powell's tenure, which is "very unusual." He also emphasized that "the White House has no say in Powell's affairs."

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