Speaking in an interview this morning, Treasury Secretary Scott Bessent has that the government shutdown might negatively impact U.S. economic growth.
Bessent, stated, “This isn’t the way to have a discussion, shutting down the government and lowering the GDP. We could see a hit to the GDP, a hit to growth and a hit to working America.”
The Treasury Secretary continued, “Senator Schumer, Representative Jeffries, you know, they’re weak, they’re discombobulated… They don’t represent the American people, and you know they’re making up excuses.”
Today, Cabinet officials addressed the ongoing government shutdown on its second day, as the two opposing sides in Washington, D.C., remain unable to reach an agreement on a continuing resolution that would enable government spending and operations to continue.
Although previous government shutdowns have had little effect on growth, a prolonged shutdown could cause some damage, especially if President Donald Trump follows through and permanently fires a significant number of the approximately 750,000 federal workers affected by the current situation.
On a different note, Bessent said interviews are ongoing to find a replacement for Fed Chair Jerome Powell, whose term ends in May 2026. The first round of interviews has finished, with the second set to start next week, leading to a list of three to five candidates sent to Trump for a final decision.
By CEO NA Editorial Staff