Overview
- National Economic Council Director Kevin Hassett said the shutdown’s economic hit is far worse than anticipated and flagged particular weakness in travel and leisure.
- Hassett reported construction projects are slowing and noted a softer labor market tied in part to prolonged uncertainty.
- He declined to label any sector as in recession, diverging from Treasury Secretary Scott Bessent, who recently described recessionary pockets.
- One outlet reported the FAA cut about 10% of flights—roughly 700—in 40 high-volume markets as unpaid air traffic controllers face mounting strain.
- Hassett voiced disappointment after Federal Reserve Chair Jerome Powell signaled a possible December rate pause, as the administration intensifies public pressure on the Fed and President Trump blames Democrats for the shutdown.