Friday brought no shortage of bad economic news, with gas prices remaining high due to the ongoing Hormuz Strait closure, and a key Consumer Sentiments Index hitting an all-time low. But even so, White House Director of the National Economic Council Kevin Hassett is still smiling, much to the vexation of Fox Business host Stuart Varney.The segment began with a discussion of the Strait of Hormuz, which has been closed for weeks due to President Donald Trump’s war on Iran, driving sky-high oil prices, which have begun to translate into cost increases to just about everything else. Even so, Hassett attempted to bluff his way through an assertion that prices are coming down, even as Fox displayed a graphic showing price hikes ranging from +4.6 percent for electricity to +44.2 percent for fuel oil. “While you were talking we had a graphic on the screen that shows all kinds of items that have gone up very significantly,” noted Verney. “I don't think you've won the war on inflation at this point.”“That’s exactly right,” admitted Hassett.They continued to discuss the matter of inflation, as a Labor Department report released Friday shows a 3.3 percent increase over the point last year — the highest jump in two years.Hassett spent a few months trying to dress up the bad economic situation, but Varney wasn’t buying it. "A fine performance, if I may say,” declared the bemused host. “3.3 percent inflation and you smiled all the way through — as you usually do.”When asked whether the Strait would reopen within two months, which would hopefully provide some much-needed relief to prices and consumers, Hassett gave a confident affirmation, saying the White House “A team” is currently engaged in negotiations. The administration’s negotiators have previously been criticized for being “ill-prepared” during previous talks.