Trump Econ Adviser Says It’s Good Sign Americans Using Credit Cards More As Iran War Blows Up Their Budgets

National Economic Council Director Kevin Hassett on Wednesday touted that Americans were relying more heavily on credit cards while the Iran war makes everyday goods more expensive.

Hassett said on Fox 💼Business’ “Mornings with Maria” that Americans were spending more on goods with credit cards despite prices soaring since the beginning of the Iran war. The consumer price index (CPI) spiked 0.9% in March, pushing the annual inflation rate to 3.3%, largely due to the increase in energy prices as a result of the blockade on the Strait of Hormuz.

“The consumer is really, really firing in all cylinders just like the corporate sector you’re seeing in the earnings reports and they’re doing that because they have so much more money in their pockets. In fact, I had the head of one of the big five banks in my office yesterday going through the credit card data and Secretary Bessent said credit card spending is through the roof. They’re spending more on gasoline, but they’re spending more on everything else too.”

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The total credit card debt in the U.S. stood at over $1.2 trillion in the fourth quarter of 2025, according to data from the New York Federal Reserve Bank. In that same timeframe, 7.13% of cardholders were overdue by 90 days or more. Total household debt increased 1% to $18.8 trillion in the fourth quarter of 2025, according to the New York Fed.