The U.S. economy is still absorbing the effects of pandemic-era fiscal stimulus, White House National Economic Council Director Kevin Hassett said in a Tuesday interview. Hassett argued that Trump-era relief was appropriately sized to fill an economic gap, while later Biden administration spending expanded beyond that need and directed funds into other areas. He noted that inflation was about 1.5% at the end of Trump's first term before rising sharply amid extended pandemic spending and other factors. The Biden administration signed the $1.9 trillion American Rescue Plan in March 2021, which some economists say worsened inflation, although its precise impact remains disputed. U.S. inflation peaked near 9% in summer 2022 before gradually declining, while inflation, living costs and economic performance remained central issues late in the midterm election cycle.