Treasury Secretary Scott Bessent Discusses Economic Impact of Government Shutdown

Treasury Secretary Scott Bessent reported an $11 billion impact on the U.S. economy due to a 43-day government shutdown. Despite this, he is optimistic about future growth driven by lower interest rates and tax cuts. Inflation is attributed largely to the service sector, not tariffs.

Treasury Secretary Scott Bessent revealed on Sunday that the 43-day government shutdown inflicted an $11 billion permanent loss on the U.S. economy.

Despite this setback, Bessent expressed optimism for next year's growth, thanks to easing interest rates and benefits from tax cuts. He made these comments during an appearance on NBC's "Meet the Press." He highlighted that sectors sensitive to interest rates, such as housing, had recently been in recession, but he did not perceive a widespread economic risk.

Inflation rates have risen, which Bessent attributed to the service economy rather than President Donald Trump's tariffs. He also predicted that falling energy costs could contribute to lower overall prices.

(With inputs from agencies.)