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The shutdown is starting to ‘bite the economy,’ top Trump aide warns. The Senate is struggling to make a deal.
Marketwatch ^ | Nov. 7, 2025 | Victor Reklaitis

Posted on 11/07/2025 12:53:28 PM PST by lasereye

A top economist in the Trump administration offered a fresh warning Friday about the record-setting government shutdown’s damaging effects, as the Senate struggled to make a deal to end the closure and airports began to reduce flights.

“Because it’s so long, then the things that you can sort of fix for a little while are starting to run into blocks, and so we’re seeing that in air-traffic control and permitting,” Kevin Hassett, director of President Donald Trump’s National Economic Council, told reporters. “Basically throughout the economy, there are disruptions because of the Democrat shutdown that are going to start to really bite the economy.”

In assessing the likely economic hit from the shutdown, Hassett noted that Wall Street firms are expecting that growth in gross domestic product will decrease by 1 or 1.5 percentage points, which is in line with estimates from Trump’s Council of Economic Advisers. On the plus side, Hassett said that once the government reopens, there should be a “big rebound for GDP,” due in part to federal workers again receiving paychecks, including back pay.

The Federal Aviation Administration instituted a 4% reduction in flights at 40 airports Friday, citing shortages of air-traffic controllers, who have been working without pay during the shutdown. The reduction is slated to ramp up to 6% by Tuesday, to 8% by Thursday and finally to 10% in a week.

Chris Krueger, an analyst at TD Cowen’s Washington Research Group, said in a note Friday that his best guess is that the government will reopen either Nov. 14 or Nov. 21, “in advance of peak Thanksgiving travel season.”

Democratic Sen. Chris Murphy of Connecticut said in a social-media post that Tuesday’s elections, which featured significant wins for his party in New Jersey and Virginia, were “a message to Democrats to keep fighting.”

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: economy; shutdown; trumpshutdown
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1 posted on 11/07/2025 12:53:28 PM PST by lasereye
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it doesn’t seem the GOP is capable of forcing the Rats’ hand — even though the Rats have forced the protracted shutdown — almost as if the Rats are in control...


2 posted on 11/07/2025 12:56:46 PM PST by Gene Eric
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To: lasereye

“The Senate is struggling to make a deal.”

i.e. the Senate is considering a complete cave to Democrats’ demands.


3 posted on 11/07/2025 12:58:14 PM PST by fwdude (Why is there a "far/radical right," but damned if they'll admit that there is a far/radical left)
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To: Gene Eric

How can this be? Trump needs to crack GOP Senator heads..


4 posted on 11/07/2025 1:00:02 PM PST by dpetty121263
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To: lasereye

Hopefully the shutdown continues.

We need to figure out what is essential, so we can eliminate the unnecessary spending bloat that is non-essential.

If either side folds now, we may not be able to identify future spending cuts


5 posted on 11/07/2025 1:02:59 PM PST by unclebankster (Globalism is the last refuge of a scoundrel. )
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To: dpetty121263

Thune’s proven to be the jackass we anticipated


6 posted on 11/07/2025 1:03:55 PM PST by Gene Eric
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To: Gene Eric

He’s done a great job...Go after the Dems...this shutdown is their doing. They’ve always voted for a clean CR...except this time.


7 posted on 11/07/2025 1:06:40 PM PST by Sacajaweau
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To: Gene Eric

Not yet he hasn’t but it may be coming.


8 posted on 11/07/2025 1:08:04 PM PST by iamgalt
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To: dpetty121263

How can this be? Trump needs to crack GOP Senator heads..

****************

Why?

“In this present crisis, government is not the solution to our problem; government is the problem.”

Besides, those Senators(unless the are retiring )will feel the heat before the Magnificent 47th who will hit political retirement in January of 2029.


9 posted on 11/07/2025 1:12:12 PM PST by unclebankster (Globalism is the last refuge of a scoundrel. )
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To: Sacajaweau

he’s a defiant jackass that embraces the delusion of tradition that has a peculiar way of favoring the Rats

and review my posts if you’re not satisfied with my remarks on the Rats


10 posted on 11/07/2025 1:12:22 PM PST by Gene Eric
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To: All

I’m assuming there is a legal reason against this but couldn’t local states or airlines pay the traffic controllers and then be reimbursed after the Fed opens back up ?


11 posted on 11/07/2025 1:12:53 PM PST by escapefromboston (Peace, commerce and honest friendship with all nations, entangling alliances with none.)
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To: escapefromboston

Let the military run air traffic control at major airports.


12 posted on 11/07/2025 1:15:41 PM PST by kaktuskid
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To: unclebankster
Hopefully the shutdown continues. We need to figure out what is essential, so we can eliminate the unnecessary spending bloat that is non-essential. If either side folds now, we may not be able to identify future spending cuts

Exactly!

13 posted on 11/07/2025 1:15:55 PM PST by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: unclebankster
Hopefully the shutdown continues. We need to figure out what is essential, so we can eliminate the unnecessary spending bloat that is non-essential. If either side folds now, we may not be able to identify future spending cuts

Exactly!

14 posted on 11/07/2025 1:15:55 PM PST by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: fwdude

You got that right. If the GOP caves on healthcare for illegals what incentive is there to go vote for them next year?


15 posted on 11/07/2025 1:16:21 PM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: Gene Eric

Thune is just another RINO.


16 posted on 11/07/2025 1:17:16 PM PST by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped)
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To: fwdude
“The Senate is struggling to make a deal.”

"i.e. the Senate is considering a complete cave to Democrats’ demands.",

BINGO !

17 posted on 11/07/2025 1:17:51 PM PST by traditional2 ("Is it them, again, Yogi?")
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To: traditional2

Does not Trump have to sign the bill? He needs to tell those schmoes, ok, I had your back till you sabotaged me. Im out of here in 2028, so I don’t give a rip.


18 posted on 11/07/2025 1:24:30 PM PST by Mouton (There is a new sheriff and deputy in town now!)
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To: fwdude

You can bank on it, the GOP is eventually going to cave and then the Dems can say “See they could have ended this weeks ago but instead they allowed people to starve” Dems have the media, we dont


19 posted on 11/07/2025 1:27:28 PM PST by Sarah Barracuda
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To: fwdude

They always do.

And if, or when, they do they might as well pack now. 26 will be a bloodbath.


20 posted on 11/07/2025 1:29:49 PM PST by Fledermaus ("It turns out all we really needed was a new President!")
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