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Treasury Chief Warns Shutdown Could Halve Growth as Thanksgiving Travel Risks Rise

New warnings from top officials signal mounting economic and travel risks.

Overview

  • Treasury Secretary Scott Bessent said growth this quarter could be cut by as much as half if the government funding lapse persists.
  • He described day-by-day deterioration that includes unpaid federal employees and delayed economic data, complicating policy and business decisions.
  • Transportation Secretary Sean Duffy warned U.S. air traffic could slow to a trickle heading into Thanksgiving as air traffic control staffing strains deepen.
  • The partial shutdown, which began on Oct. 1, is now the longest on record with economists warning it is eroding business and household confidence and delaying federal payments.
  • Reporting highlights pressure on programs such as SNAP and WIC and rising risk of flight reductions that would affect travelers nationwide.