US: Risk of Negative Growth Due to Payment Suspension

White House economic advisor Kevin Hassett warned that extending the federal government's payment suspension in the US could lead to negative economic growth in the fourth quarter.

Speaking on "Face the Nation", Hassett noted that the lack of air traffic controllers is causing travel delays ahead of Thanksgiving. This, he said, could negatively impact the economy, as the Thanksgiving period is traditionally one of the most important for economic activity.

"The Thanksgiving season is one of the warmest periods of the year for the economy (...) and if people don't travel during that period, we may actually see negative growth in the fourth quarter," he said.