AI could be causing 'quiet time' in labor market, top Trump economic aide Hassett says

Core Insights - Artificial intelligence is significantly increasing worker productivity, potentially leading companies to slow down hiring processes [1][2] - The U.S. GDP showed strong growth in Q2 2025, indicating positive output market signals despite a temporary softness in the labor market due to AI [2][3] - Concerns about AI replacing entry-level jobs are acknowledged, but the Trump administration has generally supported AI development [3][4] Economic Context - The Trump administration has implemented executive orders to reduce regulatory barriers and promote AI infrastructure development [4] - There is a shift in messaging from Trump and allies towards affordability, especially after recent electoral losses to Democrats focusing on this issue [5] - Grocery prices have not decreased during Trump's second term, with claims that purchasing power has increased despite rising costs during the Biden administration [5][6]