The Dow Jones (DJIA) is down slightly following a government shutdown warning from Treasury Secretary Scott Bessent.
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“We could see a hit to the GDP, a hit to growth and a hit to working Americans,” Bessent said in an interview with CNBC on Thursday. The economy is estimated to incur an annualized gross domestic product (GDP) decline of 0.2% for each week that the government is closed, while a one-month shutdown could result in 43,000 people losing their jobs, according to Goldman Sachs.
Shutdown Risks $15 Billion Hit to GDP Each Week
The U.S. could lose $15 billion in GDP for each week that the government is shut down, according to a memo from the Council of Economic Advisers. The figure could be even higher when factoring in the roughly 1.9 million federal employees who are typically furloughed or working without pay during shutdowns.
“The very real economic consequences of a prolonged government shutdown are entirely on Senate Democrats who are holding the federal government, economy, and country hostage to give illegal immigrants free health care,” said White House spokesperson Kush Desai.
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