Bessent warns shutdown could hurt GDP: 'A hit to working America'

Treasury Secretary Scott Bessent said Thursday the government shutdown could slow the economy, delivering a blow to the nation's gross domestic product (GDP) and its workers.

“This isn’t the way to have a discussion, shutting down the government and lowering the GDP,” Bessent said during a CNBC “Squawk Box” interview. 

“We could see a hit to the GDP, a hit to growth and a hit to working America,” he added. 

GDP growth exceeded second quarter expectations at a whopping 3.8 percent from April through June.

The Commerce Department had previously projected a 3.3 percent spike following the Trump administration’s fluctuating trade policies earlier in the year.

However, imports are down, consumer spending is up, and the country’s economy is expecting continued expansion. 

Bessent blamed Democrats for blocking potential gains Thursday, alleging party members are responsible for the government shutdown.

“Sen. [Chuck] Schumer, Rep. [Hakeem] Jeffries, you know, they’re weak, they’re discombobulated,” Bessent told CNBC. 

“They don’t represent the American people, and, you know, they’re making up excuses,” he added. 

Senate Democrats blocked the passage of a House-authored stopgap bill that would float current spending levels until Nov. 21.

Schumer has pushed for the restoration of Medicaid funding that was cut over the summer in addition to the renewal of Affordable Care Act subsidies set to expire later this year. 

President Trump and GOP leaders have refused to budge on the subject while promising to take advantage of the shutdown by rewiring federal agency operations with mass layoffs.

“I have a meeting today with Russ Vought, he of PROJECT 2025 Fame,  to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut, and whether or not those cuts will be temporary or permanent,” Trump wrote in a Thursday Truth Social post, referring to the director of the Office of Management and Budget.

“I can’t believe the Radical Left Democrats gave me this unprecedented opportunity. They are not stupid people, so maybe this is their way of wanting to, quietly and quickly, MAKE AMERICA GREAT AGAIN!” he added. 

In addition to slamming Democratic leaders for government closure, Bessent on Thursday shared pointed remarks about Federal Reserve Chair Jerome Powell, who has faced extreme pressure from the Trump administration to lower interest rates. 

The Treasury secretary said the first round of interviews for Powell’s replacement have been conducted and a second round of discussions are slated for next week. Powell's term expires in the spring.