Bessent: Government paralysis begins to slow down the US economy

US Treasury Secretary Scott Bessent warned that the ongoing paralysis of the federal government is having an increasingly noticeable impact on the US economy. He said this on Monday in an interview with Fox Business Network as the shutdown reached its thirteenth day.

According to Bessent, the situation is becoming serious and is beginning to affect the “real economy.” In order to ensure wage payments for members of the armed forces, the government must restrict payments in other areas of public administration—including for employees of federal institutions.

The minister added that the ongoing shutdown requires budget reallocations and the temporary suspension of some positions in federal agencies in Washington and other parts of the country. He also pointed out that the situation is hindering support for US farmers.

According to Bessent, official economic data from the Treasury Department will not be released until after the shutdown ends.

(reuters, sie)