Treasury Secretary Scott Bescent expressed concerns on Thursday about the potential economic impact of a government shutdown, saying it could hinder growth and affect workers across the nation.
“This isn’t a productive way to negotiate; it could lead to a government closure and a decrease in GDP,” Bessent remarked during an interview on CNBC.
He noted that the economy has already faced some setbacks, mentioning, “We’ve observed a decline in GDP and growth, which affects working Americans.”
Recently, GDP growth in the second quarter surpassed expectations, coming in at 3.8% from April through June. Previously, the Commerce Department had anticipated a 3.3% increase due to the Trump administration’s erratic trade policies earlier this year.
Despite this, there has been a drop in imports, an increase in consumer spending, and a hopeful outlook for ongoing economic growth.
Bessent criticized Democratic leaders for obstructing potential financial benefits, alleging that they are to blame for the government stalemate.
“Senator [Chuck] Schumer, leader [Hakeem] Jeffries—they’re ineffective, disjointed,” Bessent told CNBC.
“They don’t truly represent the people. They’re just making excuses,” he added.
Senate Democrats recently blocked a House-passed bill aimed at maintaining current spending levels until November 21st.
Schumer has been advocating for the restoration of Medicaid funds that were cut in the summer and for the extension of subsidies under the Affordable Care Act that are set to expire later this year.
President Trump and GOP leadership chose to stay on message, suggesting they might use the shutdown as an opportunity to reshape federal operations, including substantial layoffs.
“I’m meeting today with Rus Verto from Project 2025. I’ll be determining which Democratic entities might be considered political fraud,” Trump mentioned in a post.
“I can hardly believe that these extreme left-wing Democrats have handed me such a rare chance. They’re not foolish, so I suppose this is their way of quietly and swiftly making America great again!” he added.
In addition to his critique of Democratic leaders for the shutdown, Bescent brought up recent comments made by Federal Reserve Chairman Jerome Powell, who has been under significant pressure from the Trump administration.
Bessent noted that the first round of interviews with Powell has taken place, and talks for a second round are scheduled for next week, as Powell’s term comes to an end.
