The Trump administration is promising the largest tax refund in US history amid inflation concerns
White House National Economic Council Director Kevin Hassett Joins ‘Varney & Co.’ discussing the November CPI report, tax refunds, the anticipated White House announcement on housing reform and more.
A leading contender to be President Trump’s next chairman of the Federal Reserve said the administration expects a bigger tax refund and higher take-home pay next year, as more Americans continue to express concerns about affordability.
“We’re going to see the biggest refund cycle in American history, and people are going to get big refund checks,” National Economic Council Director Kevin Hassett said in an interview with FOX Business’ “Varney & Co.” on Thursday.
“We expect that part of it alone to be worth a few thousand dollars in reimbursements … the numbers are staggering.”
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In his speech on Wednesday evening, President Trump said that the administration expects “the biggest tax refund period of all time” next spring and said that most families will save between $11,000 and $20,000 a year.
The Trump administration expects the largest round of tax returns in “history” in the spring of 2026. (Getty Images)
Hassett backed up this claim and echoed the sentiments of a recent Fox News Poll, which found that 44% of those surveyed said they were lagging behind financially, and 74% viewed the economy as “not so good” or “bad.”
“You saw in the jobs report that … average wages were up 3.7%. So if you increase wages by 3.7% with 1.6% inflation, then real wages increased by a factor of 2. [to] 2.5%. “According to our estimates right now, blue-collar workers have seen about a $2,000 raise this year after inflation, because wages are growing faster than prices,” Hassett explained.
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“I think what happened at the end – and this is what happened at the beginning [Trump] term — that people will see it in their wallets,” he continued. “We didn’t pass the ‘Big, Good Bill’ until midsummer. So many of the tax changes, which affect last year, were not on any of the tax forms that people filled out at the beginning of the year. “
Overall, Hassett struck a bullish tone on the economy and pointed to what he described as a “blockbuster” inflation report for November, with figures coming in cooler than economists expected.
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“What has happened, as we’ve been predicting throughout this quarter, is that if you put iron ore in the mix, that will put downward pressure on prices,” he said.
“And don’t forget, that’s where we were last in President Trump’s first term. We were growing in the 3% range, and we had inflation in the 1% range. And it looks like that’s where we are again.”
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