The U.S. economy takes a hit as shutdown drags on

Treasury Secretary Scott Bessent says the ongoing government shutdown is starting to slow the U.S. economy — costing an estimated $15 billion each week.

(CNN)- Treasury Secretary Scott Bessent says the ongoing government shutdown is starting to slow the U.S. economy — costing an estimated $15 billion each week.

“The numbers are starting to hurt the economy,” Bessent said, as lawmakers in Washington remain deadlocked over how to fund the government.

Senator John Kennedy of Louisiana warned that the standoff could become “the longest shutdown in the history of ever.”

Federal Reserve Chair Jerome Powell added that the longer the shutdown lasts, the harder it becomes for the Fed to do its job. “We’ll start to miss that data, particularly the October data, if this goes on,” Powell said, noting that key reports used to track inflation and overall growth aren’t being collected.

Economists say the economy was already under pressure before the shutdown due to tariffs and trade uncertainty. A new International Monetary Fund report predicts that those tariffs will partly cause the U.S. economy to grow more slowly than other major economies in the months ahead.

“Tariffs tend to be significantly worse for the country that imposes them than the ones imposed upon,” said Ken Fisher, founder of Fisher Investments.

While recent trade deals have helped ease some of the damage, the IMF notes that markets remain volatile. U.S. stocks hit record highs before renewed tensions with China sent them into another round of sharp swings.

Financial analyst Andrew Ross Sorkin summed up the cycle: “We do have these boom and bust periods — and invariably, what goes up does come down at some point.”