Story perspectives

Shutdown Could Cost Economy $15 Billion Weekly, Warns Treasury

10/16/2025

Summary

Story summary

U.S. Treasury Secretary Scott Bessent says the government shutdown, in its third week, may cost the economy up to $15 billion weekly in lost output.
He notes the shutdown undercuts a strong investment boom driven by Trump's policies, especially in artificial intelligence (AI) and manufacturing.
Bessent urges moderate Democrats to negotiate and end the standoff.
The deficit-to-GDP ratio is expected to be around 3%, contingent on resolving the shutdown.

History

Historical Context

The 2013 U.S. government shutdown, lasting from October 1 to October 17, resulted from a budget impasse over the Affordable Care Act, affecting approximately 800,000 federal employees. This 16-day standoff cost the economy an estimated $24 billion and highlighted the ongoing political divisions in Congress, echoing previous shutdowns like the 21-day standoff in 1995-1996.

1 of 2

Story summary

U.S. Treasury Secretary Scott Bessent says the government shutdown, in its third week, may cost the economy up to $15 billion weekly in lost output.
He notes the shutdown undercuts a strong investment boom driven by Trump's policies, especially in artificial intelligence (AI) and manufacturing.
Bessent urges moderate Democrats to negotiate and end the standoff.
The deficit-to-GDP ratio is expected to be around 3%, contingent on resolving the shutdown.

1 / 2