US Treasury Secretary: Government Shutdown Costing Economy Billions

Article Summary

• Treasury Secretary Besant's assessment of the economic losses due to the government shutdown.
• Besant's call to end the government shutdown through bipartisan cooperation.
• Besant's emphasis on the sustainability of investment in the US economy, particularly in artificial intelligence.
• Besant's indication that the government shutdown is hindering economic growth.
• Besant's forecast that the deficit-to-GDP ratio will decrease in the coming years.

US Treasury Secretary Besant stated on Wednesday that the two-week partial shutdown of the federal government had cost the US economy an estimated $15 billion per week. This came during an assessment of the economic losses incurred by the country as a result of the shutdown, and Besant urged Democrats to cooperate with Republicans to end the crisis.

At a press conference, Besant stated that the shutdown was beginning to affect the US economy significantly. He added, "We believe that the shutdown may be costing the US economy up to $15 billion per week."

Besant pointed out that the wave of investments in the US economy, including investment in artificial intelligence, is sustainable and still in its early stages, but the government shutdown poses an increasing obstacle to this growth.

In remarks during a meeting of the International Monetary Fund and the World Bank in Washington, Besant said, "There is pent-up demand, and then President Donald Trump unleashed this boom with his policies." He added, "The only thing slowing us down is the government shutdown."

He also explained that the tax incentives offered by Republicans and the tariffs imposed by Trump would contribute to the continuation of the investment wave and the achievement of sustainable economic growth. Besant predicted that the United States would witness a period similar to the period following the emergence of railroads in the late nineteenth century or the boom of the internet and office technology in the 1990s.

In a separate context, Besant stated that the US deficit in fiscal year 2025, which ended on September 30, was less than $1.833 trillion in the previous fiscal year. Although he did not provide specific figures, he indicated that the deficit-to-GDP ratio may decrease to about 3% in the coming years.

It is worth noting that the US Treasury Department has not yet published annual deficit figures. The Congressional Budget Office estimated last week that the US deficit in fiscal year 2025 decreased only slightly to $1.817 trillion, although the tariffs imposed by Trump increased customs revenues by $118 billion.

Speaking at an event organized by CNBC, Besant said, "The deficit-to-GDP ratio, which is an important number, now starts with the number 5." When asked if he hoped to see this ratio return to "the number 3," Besant replied, "Yes, that is still possible." He added that this decrease would be achieved if the United States could "achieve more growth, reduce spending, and control it."