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White House Adviser Warns of Negative Economic Growth Amid Shutdown

2025-11-09

The BareStory

The Director of the National Economic Council, Kevin Hassett, warned on November 9 that the U.S. could experience a negative growth quarter if the ongoing government shutdown continues through the Thanksgiving holiday. The shutdown, which one summary described as being caused by a standoff over healthcare, has left 750,000 government workers unpaid.

Hassett stated that due to the shutdown, pay for U.S. military personnel could be halted after November 15. Regarding the Supplemental Nutrition Assistance Program (SNAP), the Supreme Court has reportedly issued a temporary stay that blocks full benefits. Hassett commented that while some benefits are being administered, he believes the action is testing legal limits. He said the administration is bound by the Antideficiency Act, which restricts spending without congressional appropriation.

The economic adviser addressed a recent healthcare proposal from the president involving direct payments to individuals, describing it in an interview as a "brainstorming" idea for Senate Republicans and not yet an official party position. According to one summary, a recent poll showed the president's economic approval rating at 38%, with 75% of respondents stating he is not focused enough on lowering prices.

Hassett also made several economic claims that differed from other reported data. He asserted that grocery prices have fallen significantly, disputing a Consumer Price Index figure that showed a nearly 3% annual rise. The director also stated his council estimates that tariffs have had an inflationary impact "much closer to zero," which one summary noted was different from a St. Louis Fed finding that they added 0.5% to inflation.

Left Perspective

  • The ongoing government shutdown is the primary threat to U.S. economic growth.
  • The administration’s spending options are legally restricted during the shutdown.
  • The administration is exploring new economic ideas and believes its policies have contained inflation.

Right Perspective

  • The public shows low approval of the president's handling of the economy.
  • The government shutdown is directly impacting federal workers and benefit recipients.
  • Government data and other analyses conflict with the administration's economic claims.

How it may affect me

As a U.S. reader:

• A continued shutdown may halt pay for 750,000 federal workers and military personnel, leading to financial hardship for their families.

• A Supreme Court stay blocking full SNAP benefits could reduce food assistance for households that depend on the program to buy groceries.

• An extended shutdown could cause a negative growth quarter, potentially affecting the broader economy, employment, and the value of retirement savings.

• Conflicting reports on grocery prices and inflation may create uncertainty for consumers, as official data and White House claims differ on the cost of living.

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