As the longest government shutdown in history continues, several White House officials warned of the economic impact of the impasse on the same day.
U.S. Treasury Secretary Bessant warned on Sunday that the ongoing government shutdown is having an increasingly serious impact on the U.S. economy. He said that if the deadlock continues, economic growth this quarter could be reduced by "up to half" .
“We saw the impact of the government shutdown on the economy from day one, but it’s only getting worse,” Bessant said in an interview. “Our economy has been very strong for the past two quarters under President Trump’s leadership. Now, forecasts suggest that if the government shutdown continues, this quarter’s economic growth could be halved.”
With the current government shutdown breaking historical records for duration, its impact has spread across the United States—including delays in the disbursement of Supplemental Nutrition Assistance Program (SNAP) funds and disruptions to American Airlines flights ahead of the Thanksgiving travel rush. The travel system is facing increasing pressure.
Bessant warned that the increasing pressure on key industries indicates the shutdown is beginning to impact Americans' daily lives. He also noted that consumers may face product shortages due to the slowdown in freight transport caused by the shutdown .
White House economic advisor Kevin Hassett issued a more stern warning in an interview that aired Sunday, stating that U.S. economic growth could turn negative in the fourth quarter if the federal government shutdown continues .
Hassett pointed out that a shortage of air traffic controllers caused severe travel delays ahead of the Thanksgiving holiday.
“Thanksgiving is one of the busiest times of the year for the economy… If people don’t travel during this period, we could very well see negative growth in the fourth quarter,” he said.
It is worth noting that due to the government shutdown, the US GDP data for the third quarter of 2025, which was originally scheduled to be released at the end of October, has not yet been published.
The US government shutdown, which began on October 1, has forced hundreds of thousands of federal government employees to work without pay and has caused delays in the release of key economic data, making it more difficult for policymakers and businesses to assess the health of the economy.
U.S. government shutdowns have become increasingly common in recent decades, stemming from escalating partisan struggles. Since 1976, the U.S. government has experienced 20 shutdowns. The last one occurred between December 2018 and January 2019, lasting 35 days, due to a major disagreement between then-President Trump and congressional Democrats over the budget for building a wall on the U.S.-Mexico border.
However, after a 40-day shutdown, signs of the US government reopening are emerging. On November 9, local time, US Senate Majority Leader John Thune stated that a potential agreement to end the government shutdown is "gradually being reached."
However, Thune also stated that the agreement was not guaranteed, as senators needed time to read the proposal and it could take several hours before concrete action could be taken.
(Article source: CLS)
