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Treasury Chief Warns Shutdown Could Halve Growth, Cites Risk of Product Shortages

Officials warn the prolonged funding lapse is starting to squeeze daily services along with the broader economy.

Overview

  • Treasury Secretary Scott Bessent said on ABC that quarterly growth could be cut by as much as half if the shutdown continues.
  • Bessent cautioned that slowed cargo shipments could lead to consumer product shortages and highlighted a growing human cost.
  • Transportation Secretary Sean Duffy warned flight reductions are inevitable as air traffic control staffing strains worsen ahead of the holiday rush.
  • The shutdown, which began on Oct. 1, has left hundreds of thousands of federal workers without pay and paused or disrupted key services.
  • Delayed federal data releases are complicating policy decisions, and Bessent urged bipartisan votes in the Senate to reopen the government.