Day: October 2, 2025

• Treasury Secretary Scott Bessent warned the government shutdown could shave growth off US GDP.
• He told CNBC the standoff risks hurting economic growth and “working America.”
• The shutdown is already fueling uncertainty for markets, businesses, and federal workers.

Treasury Secretary Scott Bessent said Thursday the US economy could feel the pain from the ongoing government shutdown.

“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.

This is a breaking news story. Please check back for updates.