Washington: The U.S. Department of the Treasury has raised alarms over the worsening economic situation as the federal government continues to experience a partial shutdown. Officials anticipate a slowdown in economic growth due to the ongoing closure.
According to Yemen News Agency, Treasury Secretary Scott Bessent expressed concerns in an interview with ABC News, stating, “We have seen the impact of the government shutdown on the economy from day one, and the situation is getting worse.” He highlighted the economic success under President Trump’s leadership in recent quarters, but cautioned that current estimates suggest economic growth could be halved if the shutdown persists.
The shutdown began with the start of the new fiscal year on October 1, as the government failed to pass an approved budget. This has led to the suspension of operations for several federal agencies reliant on Congressional funding. President Trump has attributed the crisis to the Democrats, indicating potential plans for ‘significant cuts to staffing and payments’ and the elimination of programs opposed by Republicans.
White House National Economic Council Director Kevin Hassett previously warned that an extended shutdown might cause a $15 billion reduction in GDP each week, though the exact duration of the financial crisis remains uncertain.