National Economic Council Director Kevin Hassett stated on Tuesday that the U.S. is still dealing with the impact of Covid-19 related stimulus spending from former President Joe Biden's first year in office, calling it a "big mistake." Hassett argued that while Trump's first administration approved the right amount of pandemic stimulus, heavy spending continued under Biden, including the $1.9 trillion American Rescue Plan signed in March 2021. He noted that inflation was 1.5% when President Trump left office, but then "took off" under Biden, peaking around 9% in mid-2022. Inflation had declined to 3% by the time Trump returned to the White House in January 2025, but has since crept higher due to the U.S. war against Iran and Russia's continuing war in Ukraine.