Newsom Accuses Trump White House of Celebrating High Gas Prices After Hassett Credit Card Remark

California Governor Gavin Newsom accused the Trump administration of cheering on financial hardship for ordinary Americans, Benzinga reported Wednesday, following remarks from White House Chief Economist Kevin Hassett about rising credit card activity linked to fuel purchases.

Newsom Targets Hassett’s Credit Card Remarks

Hassett had pointed to surging credit card expenditure as a sign of consumer activity, noting Americans were spending more at the pump and elsewhere. Newsom’s official press office pushed back sharply on that framing. In a post on X, the office said the administration was openly celebrating Americans paying more for gasoline and carrying larger credit card balances. The statement accused the White House of bragging about citizens being financially squeezed. Newsom’s team added that the administration appeared completely disconnected from the everyday economic pressures facing working families.

National Average Breaks $4.50 Threshold

The political clash arrived as fuel costs climbed to uncomfortable levels across the country. Data from the American Automobile Association showed the national average for a gallon of regular gasoline hit $4.536 on Wednesday. California felt the sharpest pain, with a statewide average of $6.160 per gallon. Mono County recorded the highest local figure in the state, reaching $7.044 per gallon. The numbers gave added fuel to Newsom’s argument that the administration was out of step with consumer reality.

Also Read: Oil Prices and the Fed: How Energy Costs Shape Rate Decisions

Background: Refinery Disruptions and Regional Variation

Not all regions are equally exposed to the current price spike. GasBuddy analyst Patrick De Haan suggested that Midwest states including Indiana, Illinois, Ohio, Minnesota, and Wisconsin could see some relief once refinery operations return to normal after recent disruptions. Those temporary supply constraints have contributed to wider-than-usual price divergence across the country. California’s persistent structural factors, including its distinct fuel blend requirements and tax regime, typically keep its prices well above the national mean regardless of broader market conditions.

Also Read: Energy Costs and Consumer Spending: What the Data Says

Broader Political Context

The gas price dispute unfolded against a busy political backdrop. Senators Bernie Sanders and Elizabeth Warren both weighed in separately, with Warren revisiting insider trading allegations involving administration figures. Meanwhile, President Donald Trump expressed optimism that a diplomatic agreement with Iran remained achievable, a development that could eventually ease crude supply concerns and offer downstream relief at the pump. Iran-related tension has been a contributing factor to elevated energy prices throughout recent months.

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