The director of the National Economic Council of the United States, Kevin Hassett, stated this Friday, 7th, that the impact of the United States government shutdown “is much worse than expected” and could cause lasting damage to the efficiency of public administration. The shutdown “could have a long-term effect on the government’s ability to function efficiently,” he warned.
According to Hassett, sectors such as travel and leisure are being hit hard, but the economic recovery should be quick if the impasse, in its 38th day today, is resolved soon. “The economy will recover if the government reopens,” he said in an interview with Fox Businessadding that he does not see “negative growth in the quarter if the shutdown ends soon”. “Democrats will not stop the president’s economic agenda, even with the shutdown.”
Hassett highlighted that the outlook for next year “is simply fantastic” and that economic growth could be close to 4% in 2026.
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He also commented on the Supreme Court hearing on the tariffs imposed by Donald Trump, classifying it as “great”, without going into further detail.
Criticism of the Fed
Still in the interview, Hassett criticized the Federal Reserve (Fed, the North American central bank) for not having reduced interest rates on a larger scale. “I was disappointed in the Fed,” he said, suggesting that the central bank “may have become partisan.”
When asked about the possibility of being nominated to lead the institution, he replied: “I will be happy with what President Trump decides. I have the best job in the world right now.”
