Fox News anchor Dana Perino reportedly recently challenged Kevin Hassett, the White House National Economic Council Director, regarding a surge in cash-outs and hardship withdrawals from 401(k) accounts amid the turmoil in the stock market, exacerbated by President Donald Trump’s tariff policies.
A Bloomberg report highlighted that hardship withdrawals are currently running 15% to 20% above normal levels, signaling potential financial stress for many Americans.
During a segment on America’s Newsroom, Perino expressed her concerns, asking Hassett whether these withdrawals indicate a looming economic slowdown when the country needs growth.
She noted the historical context, stating that a significant number of individuals accessing their 401(k)s right now could point to deeper issues, especially since these withdrawals often come with penalties.
“Wall Street does affect at some point Main Street and this from Bloomberg today that there are a historic high number of people who are cashing in their 401(k)s right now. And that means that, you know, that also comes with a penalty. Empower sees hardship withdrawals run in 15 percent to 20 percent above the historic norm.” Perino said.
“So, that’s not good timing for them in the last few days anyway. Does that give you concern about the bigger picture of an economic slowdown when what we need is economic growth?” she added.
Hassett responded by suggesting a need to examine the basis of these figures more closely, arguing that a 15% or 20% rise from a low starting point might not be as alarming.
He emphasized that stock markets naturally experience fluctuations, and people often react emotionally during downturns, leading to decisions that may hinder long-term wealth accumulation.
Perino, while acknowledging Hassett’s points, highlighted the reality facing many Americans who are currently struggling.
The exchange underscored the tension between perceived economic indicators and the lived experiences of ordinary citizens dealing with the fallout from market instability.
As the discussion unfolded, it became clear that while economic theories suggest patience in investing, many individuals are feeling immediate pressure to access their retirement savings in these uncertain times.
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