Khaberni - White House economic advisor Kevin Hassett said that the economic impact of the U.S. government shutdown is much worse than anticipated, but he expects the American economy to quickly rebound once the shutdown ends.
Hassett added in an interview with Fox Business Network that construction projects have begun to slow down, and the travel sector is suffering.
He continued, "The travel and leisure sector is under significant pressure, and if this situation continues and air travel declines for another week or two, it can be said that we will at least see a slowdown in the short term."
He noted that the job market has become slightly weaker, partly due to the uncertainty caused by the ongoing government shutdown for 38 days.
Hassett expressed his disappointment after Federal Reserve Chairman (the U.S. central bank) Jerome Powell said the Council might keep interest rates unchanged in December.
In remarks made to reporters later at the White House, Hassett predicted that the U.S. economy would quickly rebound once the government shutdown ends.
Reuters
