Kevin Hassett

But if you were to...

be as fiscally irresponsible as the previous Congress was, then you would for sure see inflation go up and affordability jump back into being like the change in affordability as bad as it was before.

The thing is though that we've,

Basically, so far this year reduced the deficit for just this year by, I think it's 390 billion now.

Calendar year.

It's actually like a weird thing that she's right about the calendar year.

The fiscal year, the previous fiscal year numbers don't look as good, but it was because in the first quarter of the previous fiscal year, Joe Biden was shoveling money out the window.

And so about 40% of the deficit came from that first quarter because they were shoveling money out the window.

So if you wonder how are we doing, we prefer to talk about calendar year rather than fiscal year because then we don't get blamed for the quarter where they're shoveling money out the window.

And if you look at that, then year over year, calendar year, we're down $390 billion.

And it extrapolates to maybe six for the year.

And about a third of it is higher revenues, tax revenues, because of higher growth.

About a third of it is tariff revenue.

And about a third of it is reduced government spending.

But if, you know, if we stay on path and cut the deficit by 600 billion, that's, you know,

with a little bit of growth, you're looking at 7 or 8 trillion over 10, that's like a very significant event that reduces inflation with a big macroeconomic punch to inflation.

And so against that backdrop, when it was July, we hadn't seen all this positive development yet.

And so when we

We're negotiating with Congress with a big, beautiful bill.

Then it was the position of the president that the tariff revenue should just buy down the national debt.