Kevin Hassett, director of the Nationwide Financial Council, speaks throughout an Financial Membership of Washington occasion in Washington, DC, US, on Wednesday, Nov. 12, 2025.
Al Drago | Bloomberg | Getty Photos
Synthetic intelligence might be rising employee productiveness a lot that corporations gradual hiring, prime Trump administration financial advisor Kevin Hassett stated Monday.
“I feel that there have been blended alerts within the job market,” the Nationwide Financial Council director stated on CNBC’s “Squawk Field,” including that he has seen “actually, actually constructive alerts within the output markets.”
After noting U.S. gross home product rose at a robust tempo within the second quarter of 2025, Hassett stated, “there might be slightly little bit of, nearly, quiet time within the labor market, as a result of companies 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, nevertheless, that any AI-induced softness out there could be momentary.
“As a result of there’s a lot output development and earnings development, that is the type of factor {that a} free market will work out comparatively rapidly as, you recognize, new methods to spend cash emerge,” Hassett stated.
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 trade and brought steps to increase 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 information facilities.
David Sacks, Trump’s “czar” for AI and cryptocurrency, stated earlier in November that there shall be “no federal bailout for AI.” His comment got here after OpenAI CFO Sarah Friar stated 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 concern gained huge in main elections earlier this month.
Hassett stated on Monday that general grocery costs haven’t come down throughout Trump’s second time period, regardless of the president’s claims in any other case.
“Individuals nonetheless are attempting to dig out from the large gap that was dug by the earlier administration’s insurance policies,” he stated.
The price of a median month-to-month grocery haul shot up throughout the Biden administration and “it is gone up nearly in no way” since Trump returned to the White Home, he stated.
He added that “buying energy has gone up.”
“It is simply type of astonishing to me that the fee downside is by some means being blamed on us,” he stated.