Synthetic intelligence could possibly be growing employee productiveness a lot that corporations gradual hiring, high Trump administration financial advisor Kevin Hassett mentioned Monday.
“I feel that there have been combined indicators within the job market,” the Nationwide Financial Council director mentioned on CNBC’s “Squawk Field,” including that he has seen “actually, actually constructive indicators within the output markets.”
After noting U.S. gross home product rose at a robust tempo within the second quarter of 2025, Hassett mentioned, “there could possibly be slightly little bit of, virtually, quiet time within the labor market, as a result of corporations are discovering that AI is making their employees so productive that they do not essentially have to rent the brand new youngsters out of school and so forth.”
He maintained, nonetheless, that any AI-induced softness available in the market could be momentary.
“As a result of there’s a lot output progress and revenue progress, that is the sort of factor {that a} free market will work out comparatively rapidly as, you understand, new methods to spend cash emerge,” Hassett mentioned.
Fears about AI changing entry-level jobs are hardly new, however they’ve seldom been expressed by the Trump administration, which has championed the nascent business and brought steps to broaden its growth within the U.S.
President Donald Trump has signed a number of govt orders aimed toward lowering regulatory obstacles and selling the event of AI infrastructure, together with knowledge facilities.
David Sacks, Trump’s “czar” for AI and cryptocurrency, mentioned earlier in November that there will probably be “no federal bailout for AI.” His comment got here after OpenAI CFO Sarah Friar mentioned that her startup desires a federal “backstop” to assist its infrastructure investments. Friar later walked again that remark.
Hassett’s feedback additionally come as Trump and his allies have tried to refocus their messaging on affordability, after Democratic candidates who homed in on that situation received huge in main elections earlier this month.
Hassett mentioned Monday that total grocery costs haven’t come down throughout Trump’s second time period, regardless of the president’s claims in any other case.
“Folks nonetheless are attempting to dig out from the massive gap that was dug by the earlier administration’s insurance policies,” he mentioned.
The price of a mean month-to-month grocery haul shot up throughout the Biden administration and “it is gone up virtually by no means” since Trump returned to the White Home, he mentioned.
Hassett added that “buying energy has gone up.”
“It is simply sort of astonishing to me that the price downside is someway being blamed on us,” he mentioned.
