Trump Advisor Hassett Projects US GDP Growth Over 6% Amid Capital Spending Boom

National Economic Council Director Kevin Hassett projected US economic growth could top 6 percent amid a boom in capital spending, especially if the conflict in Iran ends soon.

"I think we really could be looking at numbers north of four, north of five, north of even six [percent], because there’s so much capital stock growth right now," Hassett told "Sunday Morning Futures."

He detailed the acceleration in capital spending. Investment jumped 3.3 percent in March alone, not at an annualized rate.

"So multiply that by 12, and you're looking at historic capital spending numbers," he added. He argued the surge stems from the Trump administration’s tax policies and onshoring efforts.

Hassett said the investment uptick is setting the stage for sustained stronger growth once new factories and infrastructure start operating.

"Remember that the 2% number that you saw for GDP growth, the reason why it was 2% and not 4 or 5% was that we imported a record number of capital goods because we're building all these factories," he said.

"Once we turn those factories on, you're going to really see growth unlike anything we've seen before."

Hassett also highlighted the pace of capital stock growth.

"That's sort of like how much stuff that we make stuff with," he explained. "It's between 5 and 8 percent right now. If you divide that by three, that's about how much GDP growth you get out of just capital spending."

He discussed the potential for gas prices to drop soon, citing increased supply as oil shipments move more freely through the Strait of Hormuz.

"That's going to help put prices down relatively quickly," he said.