Squawk on the Street Jobs Tuesday: NEC Director Hassett on Employment Report, the Fed and AI 12/16/25
Dec 16, 2025
Kevin Hassett, former Chair of the Council of Economic Advisers and current Director of the National Economic Council, provides insights on the recent employment report, revealing surprising job growth despite a rising unemployment rate. He discusses the implications of Fed rate policy and inflation, while highlighting how AI is poised to enhance productivity and wages, mitigating job displacement concerns. Hassett also tackles onshoring trends, construction growth, and his prospects for becoming Fed chair, emphasizing necessary independence in monetary policy decisions.
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AI Could Lift 2026 GDP Above 4%
- AI can lift productivity, capital and labor contributions to GDP above typical levels.
- Hassett projects supply-side growth pushing GDP north of four percent in 2026.
AI Acts As A Productivity Coach
- Workers using AI see big productivity and wage gains, acting like an AI 'coach.'
- Hassett says AI complements workers now and should raise incomes and demand over time.
Cut Red Tape For Data Center Power
- Remove permitting red tape to accelerate data center and power build-out.
- Hassett says deregulation and planning will secure needed power and chips for AI growth.
