US economy at risk of becoming 'banana republic' if Trump goes to jail: Ex-White House economist

foxbusiness.com:

Council of Economics Advisers Chairman Kevin Hassett weighs in on the Fed's monetary decision, consumer credit data, oil prices and anti-Israel protests.

As America’s macroeconomic story has slowed quite considerably over the past year, one former White House adviser warned about «the big risk» to financial stability.

«I really think if you look at the case in New York, that the judge is being so undemocratic, unconstitutional in his rulings against President Trump, it really looks like there's a conspiracy to put him in jail, to put him behind bars,» former White House Council of Economic Advisers Chairman Kevin Hassett said on "Mornings with Maria," Tuesday.

«And if President Trump is in chains, going to Rikers Island, then would you want to buy a U.S. Treasury the next day?» he posited.

U.S. gross domestic product (GDP), the broadest measure of goods and services produced across the economy, grew by 1.6% on an annualized basis in the three-month period from January through March, the Commerce Department reported in its first reading of the data this year.

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It marked the slowest pace of growth in two years, and significantly missed the 2.4% increase forecast by LSEG economists and signaled a sharp slowdown from the 3.4% pace seen during the fourth quarter.

If former President Trump has to serve jail time in New York, former Council of Economic Advisers Chairman Kevin Hassett warns markets will tank. (Getty Images/iStock/Photo illustration)

After posting the subpar growth momentum, stock investors went into selling mode as markets reacted with the Dow Jones Industrial Average falling over 375 points and the S&P 500 and