Treasury Secretary Warns Government Shutdown Threatens US GDP Growth

Treasury Secretary Scott Bessent Said Thursday the US Economy Could the Pain from the O ongoing Government Shutdown.

“THIS ISN’T THE WAY TO HAVE A DISCUSION, SHUTTING DOWN THE BOVERNMENT AND LOWERING THE GDP,” BESENTT TOLD CNBC’S “SQUAWK BOX.”

“We were a hit to the gdp, a hit to growth, and a hit to working America.”

Though past shutdowns have tended to leave only a small mark on the economy, bessent cautioned that this shutdown, which began at midnight on Tuesday, Could Be Different.

Economists have said that a prolonged stoppage could inflict More damage, especally if President Donald Trump were to follow Through on Threats some of the 750,000 federal workers who are affected.

Asked Whether Trump is actually considing that step, bessent brushed it off as a “Talking point.”

At the Same Time, he pinned the blame Squarely on Democratic Leadership in Congress, arguing that they have failed to present Solutions.

Bessent argued democrats were blocking a clean continuing resolution while demanding $ 1.5 trillion in new spending-“almost as the ill-fated IRA, whic caused the worst in half a centur.”

He warned that such measures risk reigning inflation at a time a time when it is running at 3.8% in the second quarter of this year.

Bessent’s Warning Comes As the Shutdown Drags on, with Federal Workers Furlughed and Key Services Frozen. Economists Have Long CaUTIONED that extended shutdowns can ripple through the economic, Curbing Consumer Confidence, Slowing Spending, and Weighing on Financial Markets.

Bessent’s comments add to the Presurte on Lawmakers to Resolve the Standoff, which is Already Stoking Uncetainty on Wall Street and Among Businesses Reliant on Government Contracts.

Shutdown’s ramifications

The Shutdown is Hitting Federal Employees First.

Workers Across Agencies, Including the CDC, Social Security Administration, and Department of the Interior, Told Business Insider They Been Blunt Warning About Postsible Furloughs, confusion over nonb security, and tan politically charged Language Blaming Blamp. Blocking fining.

The Disruption Also Risks Stalling Crucial Economic Data.

The bureau of labor statistics has already said it won’t release the september jobs Report if the shutdown continues, and inflation scheduled for mid-october culd be delayed.

Markets have reacted nervously: Dipped Stocks, Bond Yields Edged Lower, and Gold Surged to Fresh Highs As Investors Safe Safe Havens.

While history suggests shutdowns usually have a short-lived impact on markets, this one comes at a sensitive moment.

Economists Warn that prolonged Disruption COULD SHAVE BILLIONS OFF QUARTERLY GDP, DERAIL The Federal Reserve’s Decision-Making, and Deal a Confidens Blow That Lasts Long AFTER The Government Reopens.