A top economic adviser to President Trump warned Wednesday that if the ongoing partial government shutdown persists through March, economic growth could halt.
Kevin Hassett, chairman of the Council of Economic Advisers, was asked during an interview with CNN whether he believes there could be “zero growth” if the government remains shut down through the first quarter.
“Yes, we could. Yes,” Hassett responded. “If it extended for the whole quarter and given the fact that the first quarter tends to be low because of residual seasonality, then you could end up with a number very close to zero in the first quarter.”
Hassett, however, said economic growth during the second quarter would be “humongous” if the government reopens, predicting that Gross Domestic Product growth could be “4 or 5 percent.”
The partial government shutdown entered its 33rd day Wednesday, and hundreds of thousands of federal workers affected by the shutdown are on track to miss their second paycheck Friday as a result of the ongoing stalemate between President Trump and Congress.
Trump has demanded Congress include $5.7 billion for a wall along the U.S.-Mexico border in a measure to end the shutdown, a request opposed by Democrats. On Saturday, Trump pitched a deal that would include money for the barrier in exchange for three years of protections for young immigrants brought to the U.S. illegally as children and a three-year extension of relief for immigrants in the country with Temporary Protected Status.
Democrats, however, swiftly rejected Trump’s proposal.
