Treasury Secretary Bessent has issued a stark warning that a federal government shutdown could reduce quarterly economic growth by 50%. Such a scenario would disrupt public services, delay payments to contractors and employees, and undermine investor confidence. The potential contraction highlights the broader macroeconomic risks associated with political gridlock. Even a short-term closure could have ripple effects across multiple sectors, particularly those reliant on government funding or regulation. Bessent emphasized the importance of timely budget approvals to maintain economic stability and avoid unnecessary setbacks in an already fragile environment.
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Treasury Secretary Bessent warns shutdown could slash quarterly economic growth by half – Fox Business
Treasury Secretary Bessent warns shutdown could slash quarterly economic growth by half Fox Business