FBI Director Christopher A. Wray decried the government shutdown’s impact on the bureau’s employees in a video message released amid rising anxiety among thousands of agents and other personnel who have spent more than a month working without pay.
In the unusual video message, Wray also offered a seeming apology for why the FBI’s top officials were not publicly arguing for their employees, suggesting that they have not spoken out because of the repeated political criticisms of the bureau from President Trump and others in recent years.
“You know better than most that we’ve been thrust into the political spotlight more than we would have liked over the past few years,” Wray said in the message, which was directed to FBI staff. “And the last thing this organization needs now is its leadership to wade into the middle of a full-on political dispute.”
White House Economist Says Economy May Not Grow In First Quarter
Kevin Hassett, chairman of the White House Council of Economic Advisers, noted in a CNN interview that first-quarter growth tends to be relatively weak because of measurement issues and said it could be “very close to zero” if the shutdown persists through March.
“It is true that if we get a typically weak first quarter and then have an extended shutdown, that we could end up with a number that’s very, very low,” Mr. Hassett said. He added that when the government reopens, the economy should recover any lost ground.
.. Mr. Hassett also said he sees the odds of a recession in 2020 at “very, very close to zero.”
On Tuesday, Mr. Trump’s economic adviser Lawrence Kudlow told reporters at the White House he’s “not at all concerned” about the shutdown having a negative impact on the economy.
“No one likes the hardship that people are having to shoulder, including myself,” he said. “But I will also say, we are predominantly not a government-run economy. We’re a free-market economy. So when the government reopens…you will see an immediate snapback.”
.. But in an economy powered by spending and investment, which boil down to little more than consumers’ and businesses’ confidence in their future job and growth prospects, an extended shutdown could threaten broader collateral damage. A troubling sign that this risk may be materializing: The University of Michigan’s consumer-sentiment index plunged 7.7% this month from December to the lowest level since Mr. Trump was elected.
“Federal employees will receive their back pay, but that doesn’t mean that the businesses they patronize will be made whole by extra spending after the shutdown,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a note to clients Tuesday.