White House economic advisor Hassett: AI's enhancement of productivity may lead to a "calm period" in the job market, and it's time for the Federal Reserve to truly be "data-driven."

Wallstreetcn
2025.11.17 21:43
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This is a rare public acknowledgment by officials of the Trump administration regarding concerns that AI will replace entry-level jobs. Hassett also revealed that the U.S. is close to reaching a trade agreement with India. He pointed out that average monthly shopping expenditures in the U.S. have significantly increased during the Biden administration, but have hardly risen since Trump returned to the White House. At the same time, he emphasized that real wages and purchasing power are on the rise

U.S. White House economic advisor Hassett stated that artificial intelligence technology is significantly enhancing the productivity of American workers, but this may lead companies to slow down hiring, resulting in a "calm period" in the labor market.

On Monday, Hassett said in a media interview:

I think the job market is sending mixed signals; companies find that AI greatly increases employee productivity and may not necessarily need to hire newly graduated college students.

The director of the U.S. National Economic Council stated:

There may be a calm period in the labor market.

However, Hassett emphasized that this will be a short-term phenomenon. He pointed out, due to the strong growth in output and income, "as new consumption patterns emerge, the free market will relatively quickly resolve this issue."

Economists noted that a weakening labor market may prompt the Federal Reserve to cut interest rates by 25 basis points again next month. Hassett also stated:

Now is the time for the Federal Reserve to be truly data-driven.

Concerns about AI replacing entry-level jobs are not new, but it is rare for officials from the Trump administration to publicly express this viewpoint. The Trump administration has been vigorously promoting the development of the AI industry, and Trump has signed multiple executive orders aimed at reducing regulatory barriers and promoting the development of AI infrastructure.

Monetary Policy and Trade Negotiations

On trade issues, Hassett revealed that all trade agreements have been exempted, and the U.S. is "very close to reaching an agreement with India."

This statement comes as Trump and his allies attempt to shift the policy focus to the issue of living costs. Earlier this month, Democratic candidates focusing on affordability issues achieved victories in several key elections.

Hassett acknowledged on Monday that U.S. commodity prices have not overall decreased during Trump's second term. He stated:

People are still struggling to overcome the huge difficulties caused by the previous administration's policies.

He pointed out that average monthly shopping expenditures have risen significantly during the Biden administration, but have hardly increased since Trump returned to the White House. Hassett added:

Real wages have risen, purchasing power is improving, and this trend is expected to continue. What shocks me is that the cost issue is being blamed on us.

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