White House National Economic Council Director Hassett made a series of statements on economic issues on Friday, defending the latest nonfarm payrolls report and disclosing new developments in the energy sector, saying the Navy has opened the Strait of Hormuz, oil is flowing normally through it, and more energy-related announcements will be made next week.

Hassett said he was "not disappointed" with the jobs report, emphasizing that government sector employment declined while other industries all saw gains, and that "our policies are working."

He also revealed that the White House is in communication with Europe regarding diesel supply issues, saying that if Europe releases strategic reserves, it would have a "huge impact," and that he hopes relevant news will come "soon."

On interest rates and debt, Hassett acknowledged that the current level of interest expenses is "unacceptably high," but stressed that the White House respects Federal Reserve independence, that President Trump "takes deficit reduction seriously," and made clear he "does not want to inflate his way out of debt."

The Labor Department reported Friday that September nonfarm payrolls increased by only 29,000, far below the market expectation of 90,000 and below the lower bound of all forecast ranges. The unemployment rate edged up from 4.1% in August to 4.2%.

Jobs Data "In Line with Expectations"

Hassett characterized the latest nonfarm payrolls data positively, calling the report "in line with expectations" and interpreting it structurally: government employment fell while other industries rose, and "our policies are working."

He also said the current economic growth rate is "still hovering around 4%," with overall fundamentals remaining solid.

He further pointed out that consumer confidence data is strong and predicted "a strong holiday season" ahead. Housing data has strengthened, which Hassett attributed to the overall strength of the economy, adding that the White House "wants mortgage rates to come down."

Strait of Hormuz Open, Energy Announcements Coming Next Week

Hassett made relatively specific remarks on energy issues. 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 maintaining communication with Europe on diesel issues, and that if Europe releases reserves it would have a "huge impact," expressing hope that news would materialize soon.

He also previewed that more energy sector announcements would be released next week but did not disclose specific details.

Yields, Debt and Fed Independence

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

On fiscal discipline, he used relatively direct language, calling the current level of interest expenses "unacceptably high," stressing 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 "demonstrates an understanding of supply and demand shocks," and said Warsh will need to deal with the situation left by Powell's tenure, calling it "very unusual." He also emphasized, "When it comes to Powell, the White House doesn't get to decide."