White House Senior Advisor Kevin Hassett spoke at a White House conference on Wednesday, talking about the Gross Domestic Product (GDP) forecast and the government shutdown.

Key quotes

GDP could be between 1.5% to 2% this quarter.

The Government shutdown will impact this quarter's GDP.

The Fed is unlikely to cut 50 basis points.

Inflation momentum is pretty directional.

I agreed with the previous two Fed meetings that it was time to cut rates.

Inflation isn't all the way where you want it to be.

Supply-side policies will allow growth without inflation.

The deficit could drop by about $600 billion this year.

US trade and fiscal deficits are going down.

Historically, the Dollar is strong now.

If you want inflation to take care of the deficit, you are on the road to a financial crisis.

If I am asked to be the Fed chair, I'll do it.

The Fed is more likely to do a 25 BPS cut.

I agree with Trump that rates can be a lot lower.

If I'm at the FOMC, I'm more likely to move to cut rates, while Powell is less likely.

GDP for the year will be about 2%.

The deficit drop is one-third tariff revenue, one-third tax revenue due to the economy, and one-third spending reduction. "