Asks if President Trump now officially owns the economy and about the debate over AI productivity lowering interest rates without inflation while employment questions arise.
Andrew Ross Sorkin
Kevin Hassett
Yes, Trump owns the economy now. We're in the biggest productivity boom since the 1990s, similar to internet introduction. AI is making companies more productive, leading to higher profits.
Kevin Hassett
Absolutely believe we're on a significant uptick. Open question is what happens to jobs as productivity goes up - job creation may lag while productivity, profits and GDP skyrocket.
Asks about last week's market volatility where tech companies were overspending and software companies feared cannibalization by big players.
Andrew Ross Sorkin
Kevin Hassett
Software engineer productivity up 50-80% due to AI tools. Big companies like Salesforce have client relationships and data built over years, so client base won't move to ChatGPT quickly.
Asks about jobs market with concerning data: largest layoffs since 2009, hot jobless claims, declining JOLTS openings.
Becky Quick
Kevin Hassett
Two forces pushing down (productivity boom reduces labor demand, illegals leaving reduces labor force), one pushing up (GDP growth through the roof at 4% year-end, 3% for year).
Asks about potential additional government shutdown impact on economy.
Andrew Ross Sorkin
Kevin Hassett
Government shutdown game is behind us - nobody on either side wants another shutdown.