Hassett Predicts Inflation Will Drop Sharply as Strait of Hormuz Reopens, Oil Prices Ease
Updated
Updated · Fox Business · May 26
Hassett Predicts Inflation Will Drop Sharply as Strait of Hormuz Reopens, Oil Prices Ease
4 articles · Updated · Fox Business · May 26
Kevin Hassett said headline inflation could fall "a lot" by year-end if the Strait of Hormuz reopens and lower oil prices quickly feed through to consumers and businesses.
Core inflation is already only slightly above the Fed's target, he said, while falling Treasury yields and what he called strong economic momentum point to easing price pressures ahead.
Energy-market volatility tied to Middle East tensions has kept investors focused on oil and Federal Reserve policy, with fuel costs still shaping broader inflation expectations.
Affordability remains a political and economic issue ahead of the 2026 midterms as Americans continue to face high grocery, housing and insurance costs.
Hassett argued the administration's push into AI, manufacturing and domestic energy production will support faster growth even as inflation cools.
With a key global oil route closed, what is the backup plan to lower inflation if energy prices remain high?
As AI investment booms, how can the U.S. prevent the sector's massive energy needs from raising household electricity bills?