Hassett Says Trump $5,000 Checks Can Be Fiscally Responsible

(Bloomberg) -- White House National Economic Council Director Kevin Hassett played down concerns that President Donald Trump's proposal to send $5,000 checks to every adult US citizen would add to worries about historically high government borrowing.

"We can do it in a fiscally responsible way," Hassett said in an interview Thursday with Bloomberg TV. "It is a serious proposal."

He argued that "because of all the growth and all the wealth being created in the US, the president thinks we need to return more of that to the American people." He said one way of doing that is via a reconciliation bill — a legislative mechanism that the majority party in the House and Senate can use for a fiscal package that bypasses the need for votes from the opposing party.

When pressed on what sort of offsets might be twinned with the checks — which would amount to more than $1 trillion in added spending at a time the US federal debt burden is heading toward a record high — Hassett said that would have to be "negotiated with Congress."

Trump floated the $5,000 proposal earlier this week, conditional on Republicans retaining their congressional majorities.

"The bottom line is there are multiple paths to getting it done — don't underestimate President Trump," Hassett said.

Analysts are skeptical the $5,000 payments will come to fruition, after top GOP lawmakers in the House and Senate offered a muted reaction to the idea.

"President Trump's attention-grabbing proposal for $5,000 checks to all adults if Republicans win the midterms is a non-starter in Congress, due to the massive fiscal cost and inflationary impacts," Evercore ISI analysts wrote in a note Friday.

The NEC director also on Friday said that while the August consumer price index release showed an acceleration in prices, the three-month trend still shows a deceleration in inflation. Asked about the potential for the Federal Reserve to react by raising interest rates next week, Hassett said, "I would guess that if the Fed makes a big move, the president will have something to say about it."

With assistance from Vonnie Quinn and Michael McKee.