Khaberni - U.S. Treasury Secretary Scott Bisent said on Wednesday that the ongoing government shutdown, lasting two weeks, is costing the American economy about $15 billion daily in production losses, and urged the Democrats to "be heroes" and cooperate with the Republicans to end this shutdown.
Bisent said in a press conference that the impact of the shutdown is starting to hit the American economy. He added, "We believe that the government shutdown may cost the economy up to $15 billion daily."
Bisent pointed out that the wave of investment flowing into the American economy, including artificial intelligence, is sustainable and still in its early stages, but the government shutdown is an increasingly big obstacle.
Speaking at a CNBC event held on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Washington, he said, "There is pent-up demand, but President (Donald) Trump’s policies have unleashed this boom."
He added, "The government shutdown is the only thing slowing our progress."
Bisent also mentioned that the incentives in the tax law introduced by Republicans and the tariffs imposed by Trump are likely to sustain the investment boom and bolster ongoing growth.
* Deficit Reduction
Bisent also said that the deficit for the fiscal year 2025, which ended on September 30, is smaller than the deficit recorded last year of $1.833 trillion. He did not mention a number, but he stated that the deficit-to-GDP ratio might fall to around three percent in the coming years.
The Treasury Department has not yet announced the annual deficit number.
Last week, the Congressional Budget Office estimated that the fiscal year 2025 deficit had slightly decreased to $1.817 trillion despite an increase of $118 billion in customs revenues from the tariffs imposed by Trump.
Speaking at a CNBC event, Bisent said, "The deficit-to-GDP ratio, the important number, is now starting with five," indicating that the ratio is approximately five percent.
