Trump’s top economist says shutdown could stall the economy completely

[Rogue Valley]

Trump’s top economist says shutdown could stall the economy completely

1/23/19
The White House’s top economist on Wednesday said the economy could completely stall in the first three months of 2019 if the government shutdown does not end, drawing a sharp contrast with the rosy economic picture President Trump has tried to paint during the month-long funding lapse. White House Council of Economic Advisers Chairman Kevin Hassett, in a CNN interview, was asked if the economy’s growth rate for the first quarter of the year could fall to 0 percent if policymakers don’t step in soon. “Yes, we could” see that, he said. “If it extended for the whole quarter, and given the fact that the first quarter [growth rate] tends to be low because of residual seasonality, then you could end up with a number very close to zero in the first quarter.” It represented the most dire forecast yet from a Trump administration official on the shutdown’s economic toll. The U.S. economy rarely stalls or contracts, and a growth rate of 0 percent would be a sharp fall from its performance last year. White House officials say the partial government shutdown is stripping away roughly 0.1 percent of economic growth per week. Trump has mostly eschewed economic advice from lawmakers and experts, saying instead he prefers to follow his instincts on how best to proceed.

I imagine the Trump shutdown will have many unforeseen consequences.

Related: Trump economic adviser says zero percent growth possible due to shutdown