The finance secretary warned the closure could cost the economy $15 billion a day

Financial Secretary Scott Besslent On Wednesday, he said a continued government shutdown could cost billions of dollars a day.

Bessent said at a news conference in part government shutdown “Starting to cut tissue here” as the shutdown continues into its third week.

“We believe this shutdown could cost the US economy up to $15 billion a day,” Bessent said. The shutdown began on October 1, as neither Congress nor the White House had yet begun spending money when the fiscal year began on that date.

The Secretary of the Treasury called on the moderate Democrats in the Senate to “get rid of the disease of radicalism” by supporting the government of the American people. “

Trump official says Federal job cuts will be 10K higher during shutdown as judge lays down dead bodies

Senate Democrats Vie has blocked the tax freeze nine times following another failed vote on Wednesday. Democrats are seeking an extension of the health insurance subsidy under Obamacare that is set to expire this year. Temporary subsidies, which are direct payments made to insurance companies in exchange for lower premiums, were transferred to the US bailout program in 2021, and were extended until the end of 2025 in the Inflation Reduction Act. The law allowed those making 400% above the poverty level to qualify for subsidized prices.

Government shutdowns have occurred sporadically since 1995, when Republicans gained control of Congress for the first time in 40 years. Non-essential workers have been put in during the shutdown, while Employees are important Stay on the job – even though both parties don’t get paychecks under Federal law until the bankruptcy is over.

The shutdowns generally had little impact on the economy, although it is unclear at this time how much the current shutdown will cost.

Layoffs have ‘begun’ as the government shutdown drags on

The government shutdown began on October 1. (Bill Clark / CQ-Roll call, Inc / Getty Images / Getty Images)

The Federal Reserve Bank of Chicago President Austan Goolsbee said in an interview prepared by Fox Business’ Edward Lawrence at the beginning of the MidWest Conference on Agriculture that the MidWest Conference At the end of the shutdown, the economic impact varies based on the time and the rate of federal bankruptcy.

“Historically, broad and incomplete shutdowns don’t last very long in a passive economy because, of course, consumption has declined,” said the consumer spending fund.

“So it depends on how long this goes on. It depends on how broad it is. If there are reasons why this shutdown looks different than it did then, then that’s what we’re going to have to review.

Prediction markets are seeing a cloudy outlook as traders are betting on an extended shutdown

Young house leader hakeem jeffries, dn.yyy (Nathan Posener / Anadolu / Getty Images / Getty Images)

An analysis by Soldman Sachs Economists says that the government shutdown is short and that the longest shutdown in 2018 lasted about 155 days of the federal government as Congress funded about 85% of its operations during that time.

Goldman found that for each week of the government shutdown, federal furloughs will decrease by a quarter Economic Growth At about 0.15 percentage points of GDP in Q4, it has a positive effect with the majority of growth in Q1 taking the end of the closure at that time.

The firm’s analysis also found that the shutdown could temporarily raise the unemployment rate, but the effect should be minimal since mature workers are reported as workers on a temporary basis.

Find FOX business on the go by clicking here

Oms analyzed the closures during the 2014 fiscal year and noted that there are other areas economic disruption caused by closure.

Among those were to permit, review and license (such as energy projects); Suspension of IRS income verification for financial institutions and lenders; freezes on hundreds of small business loans; and travel and tourism disruptions from national park closures.