White House "Shutdown fallout could cause Q4 GDP to fall 1.5%… Need for rate cuts increases"

Kevin Hassett, chairman of the White House National Economic Council (NEC), publicly mentioned the need for rate cuts, saying a prolonged shutdown would deal a heavy blow to the U.S. economy in the fourth quarter.

On the 13th (local time), according to overseas economic breaking news channel Walter Bloomberg, Hassett said in a Fox News interview, "The shutdown will lower fourth-quarter gross domestic product (GDP) by about 1.5%," and added, "Given the current situation, there are few reasons not to lower interest rates."

He also pointed out delays in statistics. Hassett said, "Because of the shutdown's effects, next month employment-related statistics such as 'job gains' will be released, but the official unemployment rate statistics will have a one-month gap."

Regarding housing policy, he said he is preparing policy recommendations to submit to President Trump. He said, "We are reviewing various policies to stabilize the housing market," and "a 50-year mortgage system is also one of the items under review."

Hassett added, "We plan to submit the housing policy recommendations to President Trump within the next few weeks or months."