The ongoing government shutdown in the US is costing the American economy roughly $15 billion each day, Treasury Secretary Steven Mnuchin said on Wednesday. Speaking at a press conference during International Monetary Fund meetings in Washington, Bessent warned that the two-week-old closure is now cutting deep into the nation’s economic health. He called on Democrats to join Republicans in ending the standoff, describing them as potential heroes who could stop the bleeding.
The head of the Treasury said the shutdown was beginning to damage the US economy’s central pillar. His calculation is the first time that officials have placed a firm dollar value on the cost of the closure each day. Federal employees are still unpaid, and government services are still impacted nationwide as the political issues continue.
Investment Boom Being Blocked by Political Gridlock
Bessent had painted a rosy picture of what the economy could do, claiming investment in artificial intelligence and other industries is only just beginning. He attributed President Donald Trump’s policies to being responsible for what he termed a business boom fueled by strong demand.
Discussing at a CNBC forum, the Treasury Secretary likened what was currently happening to the big pivots in American history, such as the railroad build-out of the 1800s and the internet revolution of the 1990s.
Yet Bessent explained that the shutdown is the primary thing holding back growth. “The only thing holding us back here is this government shutdown,” he said bluntly. He claimed that tax breaks in Republican bills and Trump’s tariffs are creating the right conditions for further investment and growth.
Business executives have become increasingly concerned about the uncertainty spawned by the shutdown. Contracts, licenses, and regulatory approvals requiring government action languish in limbo. The longer the shutdown lasts, the more it hurts business planning and confidence for future projects.
Deficit Shows Slight Improvement Despite Tariff Revenue
The Secretary of the Treasury also spoke about the budget of the country, stating the fiscal year 2025 deficit came in lower than last year’s $1.833 trillion deficit. Although Bessent did not provide a specific number, he indicated that the deficit as a percentage of the economy is now a five-digit number. He hoped that the ratio could fall to three per cent in the future.
The Congressional Budget Office put out its own estimate last week, placing the fiscal 2025 deficit at $1.817 trillion. That is only a slight improvement from bringing in an additional $118 billion in customs duties through Trump’s tariff measures. Official numbers for the full year have not been put out by the Treasury Department. When asked if he would be interested in seeing the deficit ratio begin with a three, Bessent replied yes and that it is still possible. He stated the nation would have to expand its economy more quickly, spend less, and exercise tighter restraint on government spending. Economists have questioned if the goals can be accomplished while keeping existing tax and spending policies intact.
News At Glance
- The federal government shutdown is costing the US economy roughly $15 billion every day
- Treasury Secretary Scott Bessent called on Democrats to assist Republicans in closing the two-week shutdown
- The shutdown is hindering significant investments in artificial intelligence and other expanding industries
- Fiscal year 2025 deficit slightly lower than last year, at roughly $1.817 trillion
- Bessent aims to reduce the deficit-to-GDP ratio to a three per cent level through growth and spending reduction
FAQs
- How much money is the shutdown costing the U.S. economy each day?
The shutdown is costing approximately $15 billion per day in lost economic output, according to Treasury Secretary Bessent.
- How long has the U.S. government been shut down?
The federal government shutdown has been ongoing for two weeks as of Wednesday, October 15, 2025.
- What is blocking economic growth, according to Bessent?
The government shutdown is the biggest hindrance to investment growth in areas such as artificial intelligence.
- Did the budget deficit become better or worse this year?
The deficit decreased modestly to about $1.817 trillion from last year’s $1.833 trillion.
- What deficit target does the Treasury Secretary intend to achieve?
Bessent intends to cut the deficit-to-GDP ratio to three per cent through economic growth and by maintaining control over spending.
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