This is a 'temporary energy shock': Kevin Hassett

• April CPI is seen as a 'temporary energy shock,' with core CPI (excluding energy and housing) stable at 0.2%.
• Future oil prices are expected to fall due to the anticipated reopening of the Strait of Hormuz and excess capacity from Saudi Arabia/UAE.
• The Strategic Petroleum Reserve (SPR) releases have been slow due to prior depletion by the Biden administration for political reasons.
• Trump's proposal to pause the federal gas tax is discussed, with a preference for broader tax cuts and a pro-growth economic agenda.

NEC Director Kevin Hassett discusses the April CPI report, attributing high inflation to a 'temporary energy shock' that the market should 'peer through.' He expresses confidence that oil prices will decrease once the Strait of Hormuz reopens and highlights the Trump administration's pro-growth economic agenda, including tax cuts and deregulation, as key to future economic exuberance.