U.S. Treasury Secretary Scott Bessent issued a grave assessment on Saturday, stating the economic damage from the ongoing government shutdown is intensifying. He cautioned that the impact is spreading through key industries and putting pressure on federal finances. His warning highlights the worsening national crisis as the shutdown becomes the longest in U.S. history.
How is the Shutdown Directly Harming the Economy?
Secretary Bessent stated the situation is deteriorating “day by day,” with the prolonged disruption undermining key sectors. The shutdown is delivering a multi-pronged blow to the U.S. economy. It is hurting consumer confidence, which can lead to reduced spending. It is delaying critical federal payments to contractors and beneficiaries. Additionally, it is deliberately interfering with vital services that Americans depend on, such as food assistance programs and control of air traffic. This combination of factors is creating a significant drag on economic activity.
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What is the Projected Impact on Economic Growth?
The most striking economic forecast came from Secretary Bessent himself. He contrasted the recent strong performance with the current bleak outlook. “We had a fantastic economy under President Trump the past two quarters, and now there are estimates that the economic growth for this quarter could be cut by as much as half if the shutdown continues,” Bessent said. This possible drop in growth shows how damaging the political deadlock could be. Economists share the concern, warning that the ongoing shutdown may weaken business and household confidence, which drives investment and spending.
.@SecScottBessent on the Democrat Shutdown: “We’ve seen an impact on the economy from day one — but it’s getting worse and worse… There are estimates that economic growth for this quarter could be cut by as much as half if this shutdown continues.” pic.twitter.com/QWjiLSKleu
— Rapid Response 47 (@RapidResponse47) November 9, 2025
How Did the Administration Defend Its Broader Economic Record?
Bessent vigorously defended the administration’s overall economic management while raising the alarm about the closure. He accused the former Biden government of deceiving the public about inflation and harshly criticized it. He claimed the current administration’s policies have stopped the price surge and are now bringing relief. “Now we are starting to see prices level off and come down. You know, gasoline is down, interest rates are down, some mortgages are down,” Bessent stated, projecting that prices would continue to fall over the coming year.
What is the Looming Crisis for Air Travel?
The economic warnings extend beyond the Treasury. In a separate development on Sunday, Transportation Secretary Sean Duffy amplified concerns by focusing on the aviation sector. He warned that air traffic across the U.S. could “slow to a trickle” if the shutdown continues into the busy Thanksgiving travel season. This grim prediction points to a wave of flight cancellations and staff shortages. Millions would be stranded by the travel disruption, which would also cause a severe shock to the travel and hotel sectors at a time of high demand.
Why is the Situation Described as Getting “Worse and Worse”?
The consistent message from cabinet officials is one of escalating risk. The initial impacts of the shutdown are now compounding. What started as a halt to non-essential government work is now turning into a wider economic risk. The impact has grown from delayed paperwork to possible breakdowns in national travel and a clear slowdown in growth. The longer it lasts, the deeper it will affect the U.S. economy, making quick action vital.
