Government Shutdown Day 15: Bessent Warns It Could Cost $15 Billion Daily
Key Takeaways
- Treasury Secretary Scott Bessent estimates the government shutdown is costing the U.S. economy up to $15 billion per day.
- Legislative efforts to reopen the government have repeatedly failed in the Senate due to the 60-vote filibuster requirement.
- The shutdown has entered its thirteenth day, raising concerns it could become the longest in U.S. history, according to House Speaker Mike Johnson and predictions markets.
- The White House budget office has issued layoff notices to thousands of federal workers, with the steepest cuts affecting the Treasury and HHS.
- Consumer sentiment has not yet shown significant negative impact from the shutdown, though federal workers are only receiving partial pay.
Treasury Secretary Scott Bessent forcefully warned on Wednesday that the continuing government shutdown is beginning to "cut into muscle" of the U.S. economy, estimating the daily cost of lost output could reach $15 billion. Bessent called on Democrats to "break away" and support Republicans to reopen the government, as the shutdown entered its thirteenth day. Legislative action remains stalled, with the Senate rejecting the GOP-backed bill multiple times because it failed to secure the 60 votes necessary to overcome a filibuster, despite some Democrats voting in favor of the Republican measure. The White House budget office has proceeded with furloughs and layoff notices for thousands of federal workers, blaming Democratic "intransigence" for the impasse. House Speaker Mike Johnson has expressed alarm that the shutdown is approaching record-breaking length, with betting markets forecasting it could surpass the 2019 record of 35 days. Despite the political turmoil, consumer sentiment, as measured by the University of Michigan, remained largely unchanged, though federal workers have only received partial paychecks for the days worked before the shutdown began on October 1st.
