Treasury Secretary Scott Bessent warns government shutdown will hurt growth and be a 'hit to working America'

""This isn't the way to have a discussion, shutting down the government and lowering the GDP," Bessent told CNBC's "Squawk Box.""

""We could see a hit to the GDP, a hit to growth, and a hit to working America.""

"The warning comes as the shutdown drags on, with federal workers furloughed and key services frozen. Economists have long cautioned that extended shutdowns can ripple through the economy, curbing consumer confidence, slowing spending, and weighing on financial markets."

"Bessent's comments add to the pressure on lawmakers to resolve the standoff, which is already stoking uncertainty on Wall Street and among businesses reliant on government contracts."

Treasury Secretary Scott Bessent warned that the ongoing government shutdown could reduce US GDP and weaken overall economic growth. The shutdown has furloughed federal workers, frozen key services, and created uncertainty for financial markets and businesses reliant on government contracts. Economists note that extended shutdowns can curb consumer confidence, slow spending, and produce ripples across the economy. Bessent emphasized potential harm to working Americans and called attention to the economic costs of the standoff. The situation increases pressure on lawmakers to reach a resolution to prevent further damage to growth and market stability.

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