Economy

White House Adviser Warns of Negative Economic Growth Amid Shutdown

Illustration for: White House Adviser Warns of Negative Economic Growth Amid Shutdown
AI-generated illustration. Visual interpretation does not represent real individuals or scenes.

Nov 9, 2025

THE BARE STORY

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.

Same Facts. Different Perspectives.

Two AI models. Two viewpoints. One factual foundation.

Perspective by Claude

• The ongoing government shutdown is the primary threat to U.S. economic growth. National Economic Council Director Kevin Hassett warned that if the shutdown, caused by a healthcare standoff, extends through Thanksgiving, the country could face a quarter of negative economic growth. This position frames the shutdown as the key variable impacting the economy's immediate trajectory.

• The administration’s spending options are legally restricted during the shutdown. Hassett noted that the administration is bound by the Antideficiency Act, which limits spending without congressional approval. He stated that while some SNAP benefits are being administered, this action is testing legal limits, and that U.S. military pay could be halted after November 15 due to these constraints.

• The administration is exploring new economic ideas and believes its policies have contained inflation. The director described a recent presidential healthcare proposal involving direct payments as a "brainstorming" idea for Senate Republicans. Hassett also asserted that grocery prices have fallen significantly and that his council estimates tariffs have an inflationary impact "much closer to zero," suggesting the administration views its economic management as successful.

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.

Read the story at

Note: All TheBareNews content is AI-generated. For additional context, reporting, and updates, you are invited to explore the news outlets linked above.