This post was originally published on this site.
Treasury Secretary Scott Bessent warned Sunday that the ongoing government shutdown is taking an escalating toll on the U.S. economy, saying growth could be cut “by as much as half” this quarter if the impasse drags on.
“We’ve seen an impact on the economy from day one, but it’s getting worse and worse,” Bessent said during an interview on ABC’s “This Week” program.
GOVERNMENT SHUTDOWN THREATENS CRUCIAL ECONOMIC DATA, LEAVING FED — AND FAMILIES — IN THE DARK
“We had a fantastic economy under President Trump the past two quarters and now there are estimates that the economy and economic growth for this quarter could be cut by as much as half if the shutdown continues,” Bessent added.
The shutdown, which began on Oct. 1, has forced hundreds of thousands of federal employees to go without pay and delayed key economic data releases, making it harder for policymakers and businesses to gauge the health of the economy.
POWELL WARNS SHUTDOWN IS CLOUDING FED’S VIEW OF THE ECONOMY: ‘DRIVING IN THE FOG’
Once rare, government shutdowns have become increasingly common in recent decades as political brinkmanship has turned into a hallmark of budget negotiations.
Since 1976, the U.S. government has experienced 20 shutdowns. The last shutdown occurred when a dispute over funding for President Donald Trump’s border wall brought government operations to a halt for 34 days, spanning from December 2018 into January 2019.
As the current shutdown extends beyond that record, its effects are being felt nationwide, from delays in funding for the Supplemental Nutrition Assistance Program (SNAP) to mounting pressure on the nation’s air travel system ahead of the busy Thanksgiving holiday.
CLICK HERE TO GET FOX BUSINESS ON THE GO
The mounting stress on key sectors, Bessent warned, shows how the shutdown is beginning to affect Americans in their daily lives.
“There’s, of course, the human cost,” Bessent said. “We’re going to have the busiest travel day of the year right after Thanksgiving, and Americans should look to five Democratic senators to come across the aisle.”
He added that consumers could also face product shortages as cargo shipments slow because of the shutdown.
