White House Economist Says Economy May Not Grow in First Quarter

[mahatmakanejeeves]

Source: The Wall Street Journal.

White House Economist Says Economy May Not Grow in First Quarter

Kevin Hassett says growth could be ‘very close to zero’ if shutdown continues

By Paul Kiernan and Vivian Salama
Updated Jan. 23, 2019 12:54 p.m. ET

WASHINGTON—The Trump administration’s top economist said Wednesday that the U.S. economy may not grow at all in the first quarter if the partial government shutdown continues.

Kevin Hassett, chairman of the White House Council of Economic Advisers, noted in a CNN interview that first-quarter growth tends to be relatively weak because of measurement issues and said it could be “very close to zero” if the shutdown persists through March. ... “It is true that if we get a typically weak first quarter and then have an extended shutdown, that we could end up with a number that’s very, very low,” Mr. Hassett said. He added that when the government reopens, the economy should recover any lost ground.

The White House estimates the economy loses “a little more than” one tenth of a percentage point of growth for each week that the partial shutdown persists. ... Michael Feroli, JP Morgan’s chief U.S. economist, said earlier this month that the shutdown would likely shave between one and two tenths of a percentage point each week off quarterly gross domestic product growth, which he projected at a 2% annual rate. “As the shutdown drags on, the risks are skewing again to the downside,” Mr. Feroli said.

A bigger question is how much of that lost growth might be recovered in subsequent quarters.
....

Write to Paul Kiernan at [e-mail] and Vivian Salama at [e-mail]

Read more: https://www.wsj.com/articles/white-house-economist-says-economy-may-not-grow-in-first-quarter-11548256042

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Killing GDP to own the libs

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Kevin Hassett, chairman of the White House Council of Economic Advisers, says first-quarter growth could be ‘very close to zero’ if shutdown continues

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[turbinetree]

1. What gave him that clue...................over 800,000 out of work caused by his

boss and the enabling traitor in the senate.............and all of the ancillary businesses effected, did he hear about this on the news today.................and he gets paid big taxpayer bucks to come to this conclusion, may be he should go back to Fix Noise ..................... ......................fucking resign


November 3, 2020 cannot get here fast enough..................

[NCjack]

2. Time for Speaker Pelosi to reduce the budget of the White House.

Too many personal trips. Too many low quality advisors getting too much pay.

[Chakaconcarne]

3. A scapegoat for the upcoming Trump economic slowdown.

[hibbing]

4. Their solution will be? More tax cuts for the ruling class n/t