Interest rates are too high and policy is restrictive, says Treasury counselor Joe Lavorgna

Core Viewpoint - The government shutdown has caused economic disruptions, but the reopening is expected to restore confidence and provide necessary data for policy-making [2][5][6]. Economic Impact - The current quarter's GDP growth is anticipated to be lower than previously expected due to the shutdown, but the overall economy remains robust with a growth rate of over 4% in the second and third quarters [2][4]. - The reopening of the government is expected to improve consumer confidence, which has plummeted due to the shutdown [5]. Future Outlook - There is optimism for strong real GDP growth in 2026, despite the recent shutdown, as the economic fundamentals remain strong [6]. - The expectation is that there will not be another shutdown in January, as parts of the government will be funded for the full fiscal year [7][8]. Fiscal Policy and Spending - The recent federal spending trends show a decrease, with a 74% reduction in last year's fiscal deficit attributed to the Biden administration [10]. - Lower interest rates are seen as crucial for increasing affordability in sectors like home buying, with mortgage rates currently at 52-week lows [10].