White House adviser Hassett sees mixed signals in job market

Investing.com -- White House economic adviser Kevin Hassett said Monday that the job market is showing mixed signals, while output markets display "really, really positive signals."

Speaking to CNBC, Hassett suggested the labor market could be experiencing a "quiet time" as companies find that artificial intelligence is boosting worker productivity, potentially reducing the need to hire new college graduates.

"I think that there could be a little bit of almost quiet time in the labor market because firms are finding the AI is making their workers so productive that they don’t necessarily have to hire the new kids out of college," Hassett said.

Economists note that a weakening labor market could lead the Federal Reserve to cut its key interest rate by another 25 basis points in December.

Hassett also mentioned that real wages have increased and predicted this trend would continue. He stated that all trade deals have received exemptions and that the U.S. is "very close to reaching deal with India."

The National Economic Council adviser added that "it’s time for the Fed to really be data driven" in its approach to monetary policy.

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