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

Government Shutdown Impact - The government shutdown negatively impacted the current quarter GDP, preventing it from reaching its expected potential [2] - The shutdown led to a plunge in consumer confidence in the government [5] - The reopening of the government is expected to restore confidence and provide crucial economic data for policymaking [5] Economic Outlook - The economy was robust, with over 4% growth in both the second and third quarters, excluding the federal sector [4] - The administration is optimistic about real GDP growth in 2026 [6] - Lowering interest rates is crucial for increasing affordability, with mortgage rates already at 52-week lows [11] Fiscal Policy & Spending - Federal spending has decreased, with 74% of last year's fiscal deficit occurring under the current administration [10] - Republicans aim to maintain fiscal discipline to lower interest rates [11] - Discussions involve subsidies, including those related to Obamacare, with concerns about eligibility and potential misuse [9][10] Government Funding & Negotiations - A continuing resolution (CR) is expected to pass, providing short-term funding and preventing another shutdown in January [8] - Negotiations are ongoing, with potential disagreements on spending levels and priorities [8][9]