The David Rubenstein Show Kevin Hassett
Dec 4, 2025
Kevin Hassett, a seasoned economist and former Director of the National Economic Council, shares his insights on pressing economic matters. He discusses the impact of the recent government shutdown on GDP and the complexities of tariff policies, emphasizing their role in inflation control. Hassett reveals his willingness to accept a Fed chair nomination and critiques current monetary policies, advocating for a strong-dollar stance. He also delves into the potential productivity gains from AI and reflects on his experiences within the Trump administration.
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Shutdown Cuts Short-Term GDP
- The government shutdown trimmed quarterly GDP materially, roughly $15 million per week by White House estimate.
- Kevin Hassett expected the fourth-quarter growth to fall from ~3% to about 1.5–2% because of the shutdown.
Supply Growth Can Lower Inflation
- Recent CPI momentum is downward and a refinery outage distorted the latest print.
- Hassett argues supply-side policies can sustain growth without reigniting inflation.
Favor Modest Fed Rate Cuts
- Hassett expresses high regard for Jay Powell and prefers modest Fed actions.
- He believes a 25 basis-point cut is more likely and would align better than a 50 basis-point move.
