Khaberni - U.S. Treasury Secretary Scott Bisent said on Sunday that the government shutdown, which lasted 43 days, caused a permanent loss of $11 billion to the U.S. economy, but he expressed optimism about the growth prospects for next year amid easing interest rates and tax cuts.
Bisent added in an interview with NBC that sectors sensitive to interest rates in the U.S. economy, including housing, were in a recession, but he does not see the entire economy facing a risk of negative growth.
He confirmed that inflation has risen due to the service sector, not because of the comprehensive tariffs imposed by U.S. President Donald Trump, adding that he expects lower energy prices to lead to a broader decline in prices.
He added, "I am very optimistic about the year 2026. We have paved the way for a strong economy with non-inflationary growth."
Bisent cited positive data for October, including falling energy prices and rising home sales, indicating that the U.S. administration is working hard to reduce inflation.
The Treasury Secretary explained that inflation is 0.5% higher in states controlled by Democrats compared to those run by Republicans, attributing this difference to increased regulatory restrictions.
Bisent said that the measures taken last week to reduce customs tariffs on food imports such as bananas and coffee were the result of trade agreements negotiated over months, adding, "Inflation is a composite number, and we are looking at everything. That is why we try to reduce everything we can control."
Earlier, Trump signed legislation that ended the longest government shutdown in U.S. history, extending government funding until January 30, paving the way for a new confrontation next year between Democrats and Trump-supporting Republicans.
Bisent said that Republicans must immediately vote to abolish the filibuster in the Senate if the Democrats attempt another government shutdown, a demand previously made by Trump, but he avoided answering whether there were enough votes to ensure that.
