Kevin Hassett, a prominent economic advisor and former chair of the White House Council of Economic Advisers, has suggested that a significant drop in U.S. inflation is imminent due to expected declines in gasoline prices. Hassett predicts that gasoline prices could realistically reach $3 per gallon, down from the current AAA National Average of $3.872 and the EIA average of $4.052. This potential decrease in gasoline prices could lead to a ~22-25% reduction, potentially impacting the overall Consumer Price Index (CPI), which recorded a 4.2% year-over-year inflation rate in May 2026. Historically, gasoline prices have shown volatility but have generally trended downward since peaking in August 2022.
Key Takeaways
Hassett’s comments appear to suggest a potential decrease in crude oil demand, which could lower the likelihood of crude oil reaching a new all-time high.
The market pricing for crude oil reaching a new all-time high by September 30 has remained relatively stable, with only minor fluctuations in recent days.
The December 31 sub-market has seen an increase in YES probability, suggesting some market participants anticipate potential catalysts later in the year.
