Catenaa, Thursday, October 23, 2025- The ongoing federal government shutdown could drain up to $15 billion a week from the US economy, the Treasury Department said last Wednesday, revising an earlier estimate from Treasury Secretary Scott Bessent that overstated the impact at $15 billion per day.
Bessent said the shutdown, now entering its third week, is beginning to “cut into the muscle” of the economy, hindering an otherwise strong wave of investment driven by President Donald Trump’s economic policies.
He urged Democrats to back Republicans in ending the stalemate.
“The only thing slowing us down here is this government shutdown,” Bessent said during the International Monetary Fund and World Bank meetings in Washington.
He added that tax incentives and tariffs introduced under Trump were fueling a long-term investment boom, especially in technology and artificial intelligence.
The Treasury chief compared the current expansion to past industrial surges, including the railroad revolution of the 1800s and the tech boom of the 1990s.
He said the momentum in private investment remains sustainable if political gridlock eases soon.
Bessent also revealed that the US budget deficit for fiscal 2025, which ended September 30, was smaller than last year’s $1.833 trillion gap, though no official figure has yet been released.
The Congressional Budget Office last week estimated a slightly narrower deficit of $1.817 trillion.
Bessent said he expects the deficit-to-GDP ratio to fall toward 3% “in coming years,” provided growth accelerates and spending is contained.
