National Economic Council Director Kevin Hassett on Sunday downplayed growing American economic anxiety, asserting that real incomes are increasing despite persistent inflation and high gas prices.

Hassett made his remarks on ABC News' "This Week," aiming to counter a narrative of economic pessimism that has been amplified by current events, including the ongoing conflict with Iran.

"On balance, real incomes, real wages are going up," Hassett told co-anchor Jonathan Karl, suggesting that positive economic indicators were being overlooked. He claimed that when Americans review their financial situation, they will find they have more disposable income after accounting for price increases.

This perspective contrasts sharply with recent survey data. A Gallup poll indicated that Americans' economic confidence has fallen to its lowest point since October 2022. Simultaneously, the University of Michigan's consumer sentiment survey revealed a third consecutive monthly decline, reaching an all-time low and a 10% drop since April.

When pressed by Karl about the palpable anxiety and uneasiness Americans feel regarding the economy, particularly concerning rising energy costs, Hassett reiterated his belief in voters' practical financial assessments. "People look at their wallets and they decide how to vote, and if they look at their wallets and look at how much money they have after the increase in prices, they're going to find that they have a lot more money," he stated.

Hassett did concede that high energy prices are creating financial strain but expressed optimism that the situation would improve. "That's extremely frustrating, and it's something that we're working on doing lots of different things to minimize the disruption, and hopefully again the problem of the Gulf will be over soon, and then things will go back to normal," he said.

He also addressed concerns raised by Exxon Mobil Senior Vice President Neil Chapman, who warned of potential oil price spikes due to low inventory levels. Hassett dismissed these concerns, asserting that ample private and government inventories, numbering in the billions of barrels, provide sufficient runway and negate the immediate risk of sharp price increases.

The ongoing Middle East situation remains a significant factor influencing energy prices, with experts cautioning that the situation could escalate, creating further economic uncertainty. The resolution timeline for these geopolitical tensions remains unclear, adding another layer of complexity to the economic outlook.