White House adviser Hassett says GDP 'fantastic,' job gains to jump

Dec 23 (Reuters) - White House economic adviser Kevin Hassett said stronger-than-expected U.S. economic growth reported on Tuesday is a product of President Donald ​Trump's trade policies and of investment in artificial intelligence, and heralds faster ‌job gains ahead.

"It's really a fantastic number and it's a great Christmas present for the American people," ‌he said in an interview with CNBC. "This recovery is really taking off and there's a heck of a lot of people coming off the sidelines and entering the labor force... we're going to see (monthly payroll gains) back to the 100,000-150,000 range if we ⁠stay in the 4% GDP ‌growth range as we head into the New Year."

The U.S. economy grew at a 4.3% annualized pace last quarter, the Commerce ‍Department reported on Tuesday, fueled by strong consumer spending. Economists had expected a 3.3% pace.

Meanwhile, monthly payroll gains this year are down sharply from last year, a trend that continued in ​the fourth quarter and that economists attribute both to a drop in ‌immigration amid Trump's crackdown as well as softening demand for labor. In November, nonfarm payrolls increased by 64,000 jobs after decreasing by 105,000 jobs in October, data published last week showed.

A separate report on Tuesday from the Conference Board showed U.S. consumer confidence deteriorated in December amid deepening anxiety over jobs and income.

Hassett downplayed the dour ⁠mood, noting that consumer sentiment is often uncorrelated ​with real economic data. At the same time, ​he said, consumers have reason to be optimistic about slowing inflation and rising wages.

Hassett, one of four finalists in Trump's search for a ‍successor to Fed ⁠Chair Jerome Powell next year, repeated his call for a lower Fed policy rate, saying productivity gains from artificial intelligence would push down on inflation.

"If ⁠you look at central banks around the world, the U.S. is way behind the curve in terms ‌of lowering rates," he said.

(Reporting by Ann Saphir in Berkeley, California; ‌Editing by Chizu Nomiyama and Matthew Lewis)