Optimistic Economic Outlook Despite Shutdown Setback, Says Bessent

Treasury Secretary Scott Bessent reported that the 43-day U.S. government shutdown has led to an $11 billion economic hit but remains optimistic about future growth due to easing interest rates and tax cuts. He cited positive October data, and emphasized upcoming trade deals and policy changes to enhance economic prospects.

Treasury Secretary Scott Bessent announced Sunday that the 43-day government shutdown had permanently affected the U.S. economy by $11 billion. However, he remains hopeful about growth prospects, citing easing interest rates and tax cuts as significant factors for expected economic improvements next year.

Bessent attributed inflation to the services sector rather than President Trump's tariffs. He anticipated that reducing energy prices would further alleviate price pressures. Positive October data, such as declining energy prices and increased home sales, underscored his optimism for a solid, non-inflationary growth economy.

He highlighted the recent move to cut tariffs on food imports and outlined the potential benefits of policy changes on taxes and trade deals. Bessent predicted that these measures would boost real incomes and facilitate new plant openings nationwide.

(With inputs from agencies.)