- Key takeaway: Christopher Phelan said that it is too early to tell whether tariffs will have an impact on the economy and said that inflation readings were worse during the Biden administration.
- Expert quote: "America is the best place in the world to be a participant in the economy at any level. We are the envy of the world in terms of job growth, wage growth, standard of living growth." —Christopher Phelan, nominee to serve as chair of the Council of Economic Advisers.
- What's at stake: If confirmed, Phelan would not have formal authority to make the kind of changes he advocates for, but would have the president's ear on issues related to the economy.
WASHINGTON — Christopher Phelan, President Donald Trump's nominee to serve as one of his top economic advisors, sidestepped questions about recent inflation data and defended the administration's tariff policies and deregulatory agenda during his confirmation hearing Thursday morning in the Senate Banking Committee.
The committee also considered the nominations of John Crews to serve as the chair of the National Credit Union Administration and Jeffrey Ledbetter to serve as inspector general of the Department of Housing and Urban Development.
Most lawmakers' questions were directed at Phelan, who, if confirmed, would chair the Council of Economic Advisers, the White House's economic advisory body. As chair of the CEA, Phelan would
Several senators pressed Phelan on declining consumer sentiment and concerns about affordability. Phelan did not directly answer those questions, instead pointing to broader measures of economic performance.
"America is the best place in the world to be a participant in the economy at any level," Phelan said. "We are the envy of the world in terms of job growth, wage growth, standard of living growth."
Phelan argued that consumer spending paints a more realistic picture than surveys measuring sentiment.
"I like to look at what people do versus what they say," he said. "When someone decides to spend, that is a vote with their own dollars that they believe in their future, and consumer spending has been quite strong."
Asked by committee ranking member Elizabeth Warren, D-Mass., whether headline inflation is lower now than when President Donald Trump took office, Phelan deflected, responding that "headline inflation now is certainly lower than it was during the Biden administration."
The Bureau of Economic Analysis earlier Thursday reported that the personal consumer expenditure, or PCE, inflation gauge found that
Later during the hearing, Phelan admitted that if gas prices remain elevated throughout the remainder of June that there will be a significant impact on headline inflation, noting that "that's just the arithmetic." Phelan, an economics professor at the University of Minnesota and a consultant to the research department at the Federal Reserve Bank of Minneapolis, also declined to say how he would advise Trump on tariffs.
When prompted by Sen. Tina Smith, D-Minn., whether he agreed that tariffs were harming Minnesota's farm economy, Phelan said "there is a robust academic discussion" on the issue. When Smith pressed him further, Phelan said it was "too early to tell exactly what the effects of tariffs are."
If confirmed, Phelan would succeed
Crews, currently deputy assistant secretary for financial institutions policy at the Treasury Department, faced questions about
"I can't comment on that litigation, except to say that I absolutely will respect the outcome of any court," Crews said.
If confirmed, Crews would join the agency as current NCUA Chairman Kyle Hauptman prepares to leave for the Public Company Accounting Oversight Board. Hauptman has said he will remain at the NCUA until a successor is confirmed.
Ledbetter, meanwhile, pledged to review concerns raised by lawmakers if confirmed as HUD inspector general. Asked by Sen. Jack Reed, D-R.I., whether he would examine reports that HUD had delayed payments for certain housing programs, Ledbetter said he would.
"I do commit to reviewing any matters that may be of concern to you at any time," Ledbetter said. "If there's an issue out there that needs my attention, and it's important to you, then I will commit to meeting with you and discussing it."
