Finance Minister Scott Bessent said on Thursday that the US economic growth could be violated by the government’s closure.
“This is not the way to have a discussion, close the government and lower GDP,” said Bessent during a CNBC interview “Squawk Box”. “We could see a hit on GDP, a hit for growth and a hit for America’s work.”
On the second day of the government’s closure, the officer of the cabinet spoke, since the two warfare pages in Washington, DC, must be made to an agreement on continuous resolution that would enable the expenditure and operations to continue.
The growth in the USA has been on the upward path in the last two quarters after the economy had beaten in the early part of the year.
The gross domestic product rose by 3.8% in a year in the second quarter and, according to the Atlanta Federal Reserve Gdpnow Tracker, is on the right track to grow for the recent third quarter with the same price.
Although earlier government financial statements have only had a slight impact on growth, a longer interruption could cause a certain damage, especially if President Donald Trump goes through a significant number of around 750,000 federal workers through the current situation and fires permanently.
When asked whether Trump is thinking about this step, Bessent called it a “topic of conversation”.
“Sen. [Chuck] Schumer, Rep. [Hakeem] Jeffries, you know, they are weak, they are discrumbed, “said Bessent about the respective democratic leaders in the Senate and in the house.” They do not represent the American people and they know that they are inventing excuses. “
The labor market is now one of the most sensitive parts of the economy. According to ADP, the private salary statement fell back by 32,000 in September in September, which is due to the slowdown of the attitude.
Although the weekly unemployment claims were largely in check, the announced layoffs this year have been reported on Thursday at the highest level since 2020, the year of Covid Pandemic, the Challenger Challenger, Gray & Christmas.
In a separate matter, Bessent said that on Tuesday there will be news about “considerable support” for farmers, especially in the soybean industry.
He also said that interviews will continue to find a successor to Fed chairman Jerome Powell, whose term of office runs in May 2026. Bessent spoke with around 11 prospective hopes for the head of the central bank. The first round of the interviews was completed. The second begins next week, which ultimately led to a list of three to five candidates who have given Trump for a final decision.
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