Treasury Secretary Scott Bessent warned in an interview with CNBC that the ongoing government shutdown could weigh on U.S. economic growth. Speaking on the second day of the closure, he noted that without a continuing resolution to fund operations, the economy risks a drag on GDP, overall growth, and working Americans.
- “We could see a hit to the GDP, a hit to growth and a hit to working America.”
Although past shutdowns have generally shown little impact, Bessent cautioned that a prolonged one could cause more serious harm, particularly if President Trump follows through with suggestions of permanently dismissing large numbers of federal employees. He described such firings as more of a “talking point” than a concrete plan at this stage.
Separately, Bessent said the administration would announce fresh “substantial support” for U.S. farmers, with particular focus on soybean producers, early next week.
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Extended shutdown concerns could weigh on USD sentiment if growth risks build.
