U.S. Secretary of the Treasury Scott Bessent speaks to the news media about the latest tariff announcement from President Donald Trump, at the White House, in Washington, D.C., U.S. April 9, 2025.
Leah Millis | Reuters
Treasury Secretary Scott Bessent told CNBC’s “Squawk Box” on Thursday that U.S. economic growth could be hurt by the government shutdown.
“This isn’t the way to have a discussion, shutting down the government and lowering the GDP,” Bessent said during a live interview. “We could see a hit to the GDP, a hit to growth and a hit to working America.”
The Cabinet official spoke on the second day of the government closure as the two warring sides in Washington, D.C. have yet to come to an agreement on a continuing resolution that would allow spending and operations to continue.
Growth in the U.S. has been on upward trajectory over the past two quarters after the economy slogged through the early part of the year.
Gross domestic product rose at a 3.8% annualized pace in the second quarter, and, according to the Atlanta Federal Reserve tracker, is on track to grow at the same rate for the recently completed third quarter.
Though previous government shutdowns have shown little impact on growth, a prolonged stoppage could inflict some damage, particularly if President Donald Trump follows through and permanently fires a significant amount of the 750,000 or so federal workers impacted by the current situation.
Asked about whether Trump is considering that move, Bessent called it a “talking point.”
“Senator [Chuck] Schumer, Representative [Hakeem] Jeffries, you know, they’re weak, they’re discombobulated,” Bessent said of the respective Democratic leaders in the Senate and House. “They don’t represent the American people, and you know they’re making up excuses.”
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Source: https://www.cnbc.com/2025/10/02/bessent-shutdown-gdp.html
