Overview
- On day 38 of the funding lapse, Kevin Hassett said the shutdown’s economic hit is far worse than officials initially expected.
- He reported heavy pressure on travel and leisure, warning that another week or two of weakening air travel could produce a near-term downturn.
- Construction projects are beginning to slow as federal operations remain curtailed.
- Labor-market signals have softened, which Hassett partly attributed to uncertainty from the prolonged shutdown.
- Hassett voiced disappointment after Jerome Powell indicated a possible December rate pause and he declined to call any sector in recession, unlike Treasury Secretary Scott Bessent last week.