Bessent warned of negative consequences for US GDP due to the shutdown
The economic growth of the United States may suffer due to the government shutdown. This was announced on October 2 by United States Secretary of the Treasury Scott Bessent in an interview with CNBC.
"You can't have a discussion like this: shut down the government and reduce GDP. We could face a hit to GDP, a hit to economic growth, and a hit to working—age America," he said.
According to the TV channel, over the past two quarters, the United States has seen "upward economic growth" after its decline at the beginning of the year. It is noted that GDP grew by 3.8% year-on-year in the second quarter and "should grow in the third quarter."
The article also emphasizes that previous government suspensions "did not have a significant impact on economic growth," but a prolonged shutdown could be detrimental, especially if US President Donald Trump "continues to act and permanently dismisses" a significant part of the approximately 750,000 federal employees affected by the current situation.
According to Bessent, Senior Senator Chuck Schumer and Congressman Hakim Jeffries are "weak and confused." The minister added that they "do not represent the American people and come up with excuses."
In the United States, on October 1, the government was suspended. Because of this, non-authorized personnel of federal agencies will be forcibly sent on unpaid leave. At the same time, some will continue to perform their work duties without a salary.
Prior to that, on September 30, Bloomberg reported that the threat of another shutdown in the United States would significantly increase the risks of a weakening dollar. Experts note that a government shutdown may weaken the dollar in the short term, especially with delays in the publication of economic data.
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