Key Takeaways
- White House Economic Adviser Hassett stated the labor market is currently softer and expressed disappointment with the Federal Reserve's rate cut, suggesting the Fed may have become partisan.
- Hassett projects next year's growth could reach 4% with a "fantastic" outlook, but warned that Q4 GDP growth will be lower due to the government shutdown, with its impact "far worse than expected".
- Ukraine's Naftogaz announced plans to increase U.S. liquefied natural gas (LNG) imports to at least 300 million cubic meters to ensure a stable heating season, securing new supplies from Polish Orlen and American partners.
- ECB's Nagel suggested that China retaliation should be considered if economic conditions worsen.
- American Airlines (AAL) cancelled 221 flights on Friday.
White House Economic Adviser Hassett offered a mixed but largely optimistic outlook on the U.S. economy, despite current challenges. He noted that the labor market is "softer right now" but expressed confidence that the economy "will recover if government opens". Hassett also projected a robust economic future, stating that "next year's growth could be 4%" and that the "outlook for growth is just fantastic".
However, Hassett did not shy away from criticism regarding recent economic policy and its immediate impacts. He voiced his disappointment in the Federal Reserve's recent rate cut, going as far as to suggest that the "Fed may have become partisan". Furthermore, he highlighted the significant negative effects of the ongoing government shutdown, indicating that "Q4 GDP growth will be lower due to shutdown" and that the "impact of shutdown on economy far worse than expected". Hassett also warned that the "U.S. shutdown may have long-run harm to efficient government". The travel and leisure industries, in particular, are "being heavily hit" by current conditions.
In other global economic news, the European Central Bank's (ECB) Nagel conveyed a cautionary stance regarding international relations, stating that the ECB "should consider China retaliation if things get worse".
Meanwhile, Ukraine is actively working to bolster its energy security for the upcoming winter. Ukraine's Naftogaz announced intentions to "increase U.S. LNG supplies to Ukraine" and that the "imported LNG amount will be at least 300 million cubic meters". The company has "agreed new supplies with Polish Orlen and American partners for stable heating season ahead", aiming to "raise US liquefied natural gas imports to meet energy needs".
In the aviation sector, American Airlines (AAL) faced operational disruptions, cancelling 221 flights on Friday. Amidst these developments, Jefferson commented that "the U.S. Treasury market is functioning well".
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.