Treasury Secretary Scott Bessent warned Thursday that the ongoing government shutdown is more than a political standoff — it’s a direct threat to economic momentum and American livelihoods.
Speaking on CBNC’s Squawk Box placed the blame on Senate Majority Leader Chuck Schumer, arguing that “the American people are being held hostage” by internal Democratic Party politics.
“We have a 3.8% GDP, and the Democrats shut down the government. We could see a hit to the GDP, a hit to growth and a hit to working Americans,” Bessent said.
He claimed the GOP has enough votes for a clean continuing resolution (CR), but Schumer and House Minority Leader Hakeem Jeffries are blocking progress out of political pressure from the left.
Bessent Frames The Shutdown As An Inflation Risk
According to Bessent, the shutdown is a deliberate tactic by Democratic leaders to secure a $1.5 trillion spending increase, which he said would inject inflationary pressure into an already expanding U.S. economy.
He likened the move to the Inflation Reduction Act (IRA), blaming that legislation for “the worst inflation in half a century.”
“The Democrats seem to love inflation,” Bessent said, …