Key Highlights:
- Treasury Secretary Bessent warns U.S. government shutdown cuts $15B in output each day.
- The shutdown is affecting federal projects, and is raising risk of fading investor confidence.
- Crypto market gains amid this shutdown.
U.S. Treasury Secretary Bessent warned that the federal government shutdown has hit the economy hard, cutting about $15 billion in output each day. Bessent was speaking at the IMF and World Bank annual meeting in Washington today, October 15, 2025, when he shared this particular insight. He also stressed that while investment flowing into the U.S. economy stays strong, the budget deadlock has become a major hurdle.
Bessent’s comment has come at a time when the U.S. economy, driven by strong consumer spending, business investment, and foreign capital, shows resilience that is greater than most advanced nations. Still the Treasury chief warned this progress could be weakened by the shutdown’s ripple effects on federal agencies, infrastructure work, and private sector ties.
Sustained Economic Strength Under Trump Administration
Bessent praised President Donald Trump’s economic policies for sparking what he called a new wave of prosperity. “There is pent-up demand in the market, and President Trump has unleashed this force of economic prosperity through his policies,” he said. His remarks indicate that the administration’s view that tax breaks, fewer rules, and investment incentives have set the stage for years of growth.
The Treasury Secretary has warned investors that the confidence could fade if the shutdown continues any further. “The only thing currently slowing us down is this government shutdown.” Bessent commented. With this comment, he is pointing out that major growth drivers, like infrastructure projects and federal contract payments, are now stalled by the deadlock.
Shutdown Impact Intensifies
The shutdown is currently in its second week and it is because Congress has had a big fight over budget spending and policy add-ons. Big agencies, from transportation to housing, have cut staff or stopped work entirely.
Analysts are warning people that this shutdown has the capacity to impact tens of billions in lost output and wages if it continues beyond this month.
Bessent’s $15 billion per day estimate stands as one of the clearest signs on the damage that is being caused due to this shutdown. According to various economists, this figure indicates direct losses from the shutdown and indirect losses from weaker consumer confidence and delayed business moves. The longer that this shutdown lasts, the more difficult it will be to gain back the lost momentum.
Global Financial Leaders Voice Concern
As the shutdown has entered in the second week, crypto markets have seen higher trading activity, especially with stablecoins and assets that are seen as a hedge against fiscal uncertainty. Data from major exchanges show that the inflow into Bitcoin (BTC) and Ethereum (ETH), as investors are currently looking for alternatives amid the delayed economic data, stalled regulatory approvals, and volatile U.S. Treasury yields.
Bessent’s $15 billion daily loss has increased the worries about stagnation of policies due to which investors are moving towards digital assets, even though the crypto market crashed recently. Overall this week, the crypto market is up by 3%, which is led by Bitcoin and Solana, while U.S. equity futures showed significant fluctuations.
At press time, the crypto market is up by 0.7% and the market capitalization has hit the $3.8 trillion mark in the last 24 hours as per CoinGecko.
Bessent, however, is optimistic and says that the U.S. economy is strong and will bounce back right after the shutdown. The shutdown shows policy risks, while crypto gains attention and draws investors that are seeking stability.
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