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WH Hassett: Government shutdown will impact this quarter’s GDP

  • Government shutdown will impact this quarter GDP
  • Supply-side policies will allow growth that inflation.
  • Agreed with previous to Fed meeting said it was time to cut rates.
  • If I am at FOMC, are more likely to move to cut rates, while Powell is less likely.
  • Fed more likely to do 25 basis point cut.
  • If asked to be Fed chair, I’ll do it.
  • Does not know when Trump will make decision on Fed chair
  • Confirmation turmoil for Fed chair may affect announcement timing.
  • On US dollar, strong dollar policy is a sound policy.
  • On US dollar, any country needs sound currency.
  • US fiscal deficit could drop by $600 billion this fiscal year.
  • Deficit drop is one third tariff revenue, one third tax revenue due to economy and one third spending reduction.
  • We are reducing deficit relative to target, bullish about growth.
  • Will use future reconciliation bills to address US economy.
  • On housing don’t know if Trump has decided on 50 year mortgage.
  • On trade, looking at options, alternatives or authorities if the Supreme Court rules against administration in tariff case.
  • On trade any cost impacts are level, Adjust effect, not inflation

This article was written by Greg Michalowski at investinglive.com.

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