Washington, DC — Treasury Secretary Scott Bessent has placed a stark price tag on the federal government shutdown, now in its second week, estimating that it is draining $15 billion a day from the U.S. economy. Speaking at the IMF and World Bank annual meetings in Washington, Bessent said the shutdown is undermining growth momentum despite what he described as a “sustainable investment boom” unleashed by recent policy measures.
“We believe the shutdown may start costing the U.S. economy up to $15 billion a day,” Bessent told reporters, adding that the disruption is no longer a temporary inconvenience but is beginning to erode core economic activity.
Economic Impact
The shutdown has already forced the suspension of non-essential federal services, delayed regulatory approvals, and disrupted government contracts. Analysts warn that if prolonged, the fiscal standoff could:
- Weigh heavily on consumer confidence as federal workers miss paychecks.
- Delay investment decisions in sectors reliant on government oversight.
- Exacerbate financial market volatility, particularly in bond markets sensitive to fiscal uncertainty.
Bessent stressed that while payroll for military personnel remains secure, the broader economy is absorbing mounting losses each day the impasse continues.
Political Stalemate
The shutdown stems from a budget deadlock between the Trump administration and congressional Democrats. Bessent accused Senate Democrats of holding the government “hostage,” while urging moderates to break ranks and support a resolution. Republicans, meanwhile, have signaled readiness for a protracted standoff, betting that political pressure will eventually force concessions.
Broader Context
Despite the shutdown, Bessent maintained that the U.S. remains in the midst of a strong investment cycle, particularly in artificial intelligence, energy, and advanced manufacturing. However, he cautioned that the shutdown is increasingly acting as a brake on this momentum, threatening to offset gains from private-sector expansion.
Outlook
With no immediate breakthrough in sight, economists warn that the shutdown could soon rival some of the longest in U.S. history. If the $15 billion daily estimate holds, the cumulative cost could surpass $100 billion within a week, raising the stakes for both political leaders and the broader economy.
In summary: The U.S. government shutdown is exacting a heavy toll, with Treasury Secretary Scott Bessent warning of $15 billion in daily losses, intensifying pressure on lawmakers to resolve the impasse before lasting economic damage sets in.
Sources: U.S. Treasury Department briefings; IMF/World Bank Annual Meetings coverage; Reuters; The Hill; Business Standard.
