Kevin Hassett warns of 4% GDP drop if economic bill fails

On June 8, 2025, Kevin Hassett, the director of the National Economic Council, participated in an interview on 'Face the Nation' hosted by Margaret Brennan. During the discussion, he addressed several issues regarding the ongoing budget process and the potential economic impacts if legislative measures are not approved. Hassett highlighted concerns over waste, fraud, and abuse within Medicaid, suggesting that there is indeed significant misuse of resources. However, he noted that he has not received updates concerning similar issues related to Medicare and urged the Senate to pass the current economic bill to mitigate potential harm to the economy. He asserted that estimates indicate a failure to pass the bill could lead to a 4 percent decrease in GDP. Moreover, he argued that the misconception that only government-provided insurance is available is incorrect; creating jobs linked to the bill could expand insurance availability through the private sector, potentially surpassing the benefits of merely addressing waste in existing government-funded programs. Hassett also touched on international trade, acknowledging ongoing negotiations with China regarding tariffs. He predicted that any new tariffs would likely be maintained to address the historic trade deficit and spur new job growth within the United States. He expressed confidence that an impending deal could be finalized through direct negotiations between leadership rather than relying on standard bureaucratic processes. The discussions suggested a broader economic strategy that integrates both job creation and a more favorable trade environment.