Kevin Hassett, NEC Chairman
"Strong Economic Outlook Ahead... Tariff Uncertainties to Be Resolved in April"
Kevin Hassett, Chairman of the White House National Economic Council (NEC), dismissed concerns about a U.S. recession on the 10th (local time), stating that tariff uncertainties will be resolved next month. This came just one day after President Donald Trump expressed his determination to push forward with tariff policies even at the risk of a recession. The White House quickly moved to calm market fears, but the stock market was in a panic, with the Nasdaq index plunging more than 4% intraday.
In an interview with CNBC on the same day, Chairman Hassett said, "There are many reasons to expect the economy to be very strong going forward."
Regarding the Atlanta Federal Reserve Bank's 'GDP Now' real-time forecast of negative economic growth for the U.S. in the first quarter of this year, he described it as "a temporal effect occurring before President Biden's legacy and upcoming tariffs" and "a very, very temporary phenomenon."
According to GDP Now, the growth rate for the first quarter of this year was expected to decline by 2.4% compared to the previous quarter. Chairman Hassett explained that this was due to the economic policy impact of former President Joe Biden and companies postponing investments ahead of the full implementation of reciprocal tariffs next month.
He stated that tariff uncertainties would be resolved in April and also mentioned that tariff policies on Canada, Mexico, and China are already bringing manufacturing and jobs back to the U.S.
Chairman Hassett's remarks on the day are seen as an effort to ease market concerns about a recession. After President Trump revealed his willingness to proceed with tariff policies despite a temporary recession in an interview with Fox News aired the previous day, fear of an economic downturn rapidly spread in the market. When asked about the possibility of a recession, he said, "I don't want to predict such a thing," but added, "We are doing very big things, and there is a transition period in such matters."
Following the release of President Trump's comments, the New York stock market plunged on the first trading day. As of 2:06 p.m. Eastern Time, the Dow Jones Industrial Average was down 2.01%. The S&P 500 and Nasdaq indices were down sharply by 2.86% and 4.36%, respectively.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
