The Cost of the US Government Shutdown: How Much Was Lost?

Treasury Secretary Scott Bessent said the 43-day government shutdown caused permanent losses to the economy estimated at about $11 billion. Nevertheless, he expressed confidence in the course of the American economy under the current policies of cutting interest rates and implementing tax cuts.

In a television interview with NBC, Bessent pointed out that some sectors, especially those that are greatly affected by interest rates such as the housing sector, are suffering from a noticeable slowdown. However, he stressed at the same time that this slowdown does not represent a comprehensive threat to the economy, explaining that current price trends indicate a “better” improvement.

He also added that energy prices are witnessing a continuous decline, which contributes to supporting further price declines in various sectors. He expected that some prices will decrease in the coming weeks, while other sectors may need several months until the impact of this decrease appears on them. He affirmed that the sectors most sensitive to interest rates are the most affected at the present time, but he expects good growth for the economy in 2026.