Key Takeaways
- Kevin Hassett, National Economic Council (NEC) Director, expresses high optimism for the U.S. economic future, predicting strong GDP growth and attributing positive indicators to current administration policies, including tariffs.
- Hassett heavily criticizes the Bureau of Labor Statistics (BLS) data, calling it "very unreliable" and advocating for a "fresh set of eyes" at the BLS due to significant revisions in jobs numbers, including a downward revision of 258,000 jobs for May and June.
- ON Semiconductor (ON) reported Q2 2025 adjusted EPS of $0.53, meeting estimates, and revenue of $1.47 billion, exceeding expectations, with Q3 revenue guidance set between $1.47 billion and $1.57 billion.
- The UK intends to significantly reduce the time required to establish clinical trials to just 10 weeks, aiming to restore its position as a global leader in medical research.
- The U.S. Dollar is seen at risk from the current administration's moves to influence policymakers and institutions, including the Federal Reserve, raising concerns about the credibility of U.S. institutions.
Kevin Hassett, Director of the National Economic Council, has voiced considerable optimism regarding the future of the U.S. economy, forecasting robust growth. He anticipates GDP growth of 2-2.5% in Q1 2025, with potential for growth "way north" of 3% and possibly over 4% in the second half of 2025. Hassett attributes this positive outlook to the current administration's policies, including tax cuts, deregulation, and trade policy shifts, asserting that tariffs are being borne by foreign producers and are not harming American consumers.
Despite this optimistic economic forecast, Hassett has expressed strong concerns about the reliability of data from the Bureau of Labor Statistics (BLS). He described BLS data as "very unreliable" and highlighted the need to "modernize the labor data" for greater transparency. Hassett pointed to "massive revisions" in jobs numbers, including a recent downward revision of 258,000 jobs for May and June, which he noted was the largest revision since 1968, excluding the COVID-19 pandemic years. He emphasized the necessity of a "fresh set of eyes" at the BLS to address these inconsistencies and ensure data trustworthiness.
In corporate news, ON Semiconductor (ON) announced its second-quarter 2025 results, reporting adjusted earnings per share (EPS) of $0.53, aligning with analyst estimates. The company's revenue reached $1.47 billion, surpassing the estimated $1.45 billion. Looking ahead, ON Semiconductor projects third-quarter revenue to be between $1.47 billion and $1.57 billion, with adjusted EPS expected to range from $0.54 to $0.64. The company noted signs of stabilization across its end markets and is positioned for a market recovery.
In the healthcare sector, the UK is moving to significantly accelerate the setup of clinical trials. The Financial Times reports that the UK intends to reduce the time needed to establish clinical trials to just 10 weeks. This initiative is part of a broader "10 Year Health Plan" aimed at restoring the UK's global leadership in medical research and driving economic growth. The plan includes establishing a national standardized contract for trials and simplifying paperwork to reduce bureaucracy.
Meanwhile, the U.S. Dollar is facing potential risks stemming from the current administration's actions regarding economic policymakers. Strategists and economists suggest that the dollar and other U.S. assets are vulnerable to further selloffs due to threats to the credibility of the country's institutions. Concerns have been raised about the administration's influence over the Federal Reserve, with discussions around potential leadership changes at the central bank.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.