Despite Grim Headlines, Economic Growth Is Intact

Fears of a recession loomed larger last week after the chairman of the President’s Council of Economic Advisors, Kevin Hassett, doubled his estimate of the damage the U.S. economy will suffer from the partial shutdown of the federal government. He was widely quoted across the media as saying first-quarter growth of the economy could stall to zero. On Friday, the shutdown uncertainty was resolved, at least for now, and new data indicated the headlines were much more ominous than the current economic facts.