The US federal government shutdown is now starting to hurt the real economy, Treasury Secretary Scott Bessent said, as the crisis enters its 13th day.
Bessent said the government is re-routing funds to keep military personnel on their payroll, but the move has forced pay deferrals for other federal workers and the closure of institutions such as the Smithsonian museums and the National Zoo.
He expressed concern that the economic impact is becoming more pronounced, although he did not elaborate on the amount of losses or the direct fiscal impact.
Meanwhile, Bessent stressed that the shutdown has also delayed aid to farmers and various key economic programs run by the federal government.
Official US economic data has also been delayed until the government shutdown is resolved, adding to uncertainty in markets and monetary policy. Bessent stressed that the fiscal impact will continue to increase if the crisis continues without an immediate political solution.
