US Treasury Secretary Scott Bescent spoke to the news media on April 9, 2025 about the latest tariff announcement from President Donald Trump in the White House in Washington, D.C.
Rear Miris | Reuters
Treasury Secretary Scott Bescent told CNBC’s “Scoobox” on Thursday that government shutdowns could undermine US economic growth.
“This is not a way to debate, not a way to shut down the government and lower GDP,” Bescent said in a live interview. “We were able to see a hit to GDP, a hit to growth, a hit to Working America.”
Cabinet officials spoke on the second day of the government’s closure as two fighting sides of Washington, D.C. have yet to come to an agreement on an ongoing resolution allowing continued spending and operations.
US growth has been in an upward orbit for the past two quarters after the economy was thrown at the beginning of the year.
Gross domestic product rose at an annual pace of 3.8% in the second quarter, and is on a trajectory growing at the same rate in the recently completed third quarter, according to the Atlanta Federal Reserve Tracker.
Previous government shutdowns have had little impact on growth, but a long-term suspension could do some damage, especially if President Donald Trump permanently fires around 750,000 federal workers affected by the current situation.
When asked if Trump was considering the move, Bescent called it “a topic.”
“Senator (Chuck) Schumer, Representative (Hakeem) Jeffries, you know, they’re weak, they’re unmistakable,” Bescent said of the Democratic leaders of the Senate and House respectively. “They don’t represent the Americans. You know they’re making excuses.”
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