Topline<\/p>\n
White House adviser Kevin Hassett said Friday the impact of the government shutdown is \u201cfar worse than we expected,\u201d warning that the airline industry could have \u201cat least a near-term downturn\u201d if the shutdown drags on. <\/p>\n
Director of the US National Economic Council Kevin Hassett speaks to reporters outside the White House in Washington, DC, on October 31, 2025. (Photo by ALLISON ROBBERT\/AFP via Getty Images)<\/p>\n
AFP via Getty ImagesKey Facts<\/p>\n
Hassett, the director of the National Economic Council, told Fox News the shutdown impacts are worse than initially expected \u201cbecause it\u2019s gone on for so long,\u201d and predicted the U.S. GDP growth in the fourth quarter will be half the 3% initially estimated.<\/p>\n
If air travel disruptions continue for \u201canother week or two, then you could say that they would have at least a near-term downturn,\u201d Hassett said as the shutdown\u2014the longest in U.S. history\u2014surpassed 38 days and is expected to continue through the weekend. <\/p>\n
Noting a slowdown in the job market and construction projects, Hassett said, \u201cwe\u2019re starting to see pockets of the economy that look like they\u2019re in a recession,\u201d repeating a previous assessment made by Treasury Secretary Scott Bessent, and adding, \u201cthe bottom line going forward is the economy will recover and we\u2019ll be doing fine if we can just get the government opened.\u201d<\/p>\n
\u201cI really worry about what\u2019s going to happen to the government workforce,\u201d because of \u201cregular\u201d shutdowns, Hassett said, warning they could deter people from joining the federal workforce. <\/p>\n
Lamenting the Federal Reserve\u2019s suggestion last week<\/a> that it might not cut interest rates in December as was previously expected, Hassett said, he was \u201cvery disappointed,\u201d insisting the shutdown should \u201cmake them more likely to move.\u201d<\/p>\n Big Number<\/p>\n