White House Advisor Reportedly Says Government Shutdown ‘Far Worse’ Than Expected – Warns Q4 Growth Could Get Cut In Half

White House Advisor Kevin Hassett warned the shutdown could further damage economic growth if it continues another month.

White House economic advisor Kevin Hassett reportedly stated on Friday that the U.S. government shutdown is having a significantly worse impact on the economy than anticipated, largely due to its prolonged duration.

"The impact on the economy is far worse than we expected because it's gone on for so long," he said in an interview with Fox Business.

Economic Growth Takes A Hit

Hassett said the administration initially projected 3% growth in the fourth quarter (Q4), but he now expects that figure to fall to roughly 1.5%. The extended closure of federal operations is affecting not only government employees but also private sector activities that depend on federal contracts and services.

He expressed concern about the future of the government workforce, questioning whether the positions would remain attractive if shutdowns continue. “I wonder who's going to want these jobs if we don't get this solved quickly,” he said.

Ripple Effects Across Industries

Hassett also warned of the compounding consequences, confirming that the shutdown is slowing construction projects and creating broader economic ripple effects, including delays in supply chains and disruptions to local economies. 

“If we go another month or so, who knows how bad the economy could be this quarter."

– Kevin Hassett, Director of the National Economic Council

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