Topline

White House adviser Kevin Hassett said Friday the impact of the government shutdown is “far worse than we expected,” warning that the airline industry could have “at least a near-term downturn” if the shutdown drags on.

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)

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Hassett, the director of the National Economic Council, told Fox News the shutdown impacts are worse than initially expected “because it’s gone on for so long,” and predicted the U.S. GDP growth in the fourth quarter will be half the 3% initially estimated.

If air travel disruptions continue for “another week or two, then you could say that they would have at least a near-term downturn,” Hassett said as the shutdown—the longest in U.S. history—surpassed 38 days and is expected to continue through the weekend.

Noting a slowdown in the job market and construction projects, Hassett said, “we’re starting to see pockets of the economy that look like they’re in a recession,” repeating a previous assessment made by Treasury Secretary Scott Bessent, and adding, “the bottom line going forward is the economy will recover and we’ll be doing fine if we can just get the government opened.”

“I really worry about what’s going to happen to the government workforce,” because of “regular” shutdowns, Hassett said, warning they could deter people from joining the federal workforce.

Lamenting the Federal Reserve’s suggestion last week that it might not cut interest rates in December as was previously expected, Hassett said, he was “very disappointed,” insisting the shutdown should “make them more likely to move.”

Big Number

50.3. That’s the latest consumer sentiment reading, a three-year low, according to a University of Michigan survey released Friday. Americans’ views on the economy fell from 53.6 in October and neared the record-low of 50 set in June 2022.

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