Washington. Treasury Secretary Scott Bessent said yesterday that the 43-day government shutdown caused a “permanent hit” of $11 billion to the US economy, but he was optimistic about growth prospects for next year, given lower interest rates and tax cuts.
Bessent told NBC that some rate-sensitive parts of the U.S. economy, such as housing, were in recession, but he ruled out widespread negative growth.
The official blamed the inflation on the service economy, and not on the tariffs imposed by the president of the United States, Donald Trump; He added that he expects a drop in energy prices, which in turn will reduce the cost more generally.
“I am very, very optimistic about 2026. We have set the table for a very strong, non-inflationary growth economy,” he said.
Bessent pointed to positive data from October, such as falling energy prices and rising home sales, and said the government is working hard to reduce inflation.
He asserted that the price increase is 0.5 percent higher in states controlled by Democrats than in those governed by Republicans, and attributed the difference to greater regulation.
Measures taken last week to cut tariffs on imports of foods such as bananas and coffee were the result of trade deals negotiated for months, Bessent said. “Inflation is a compound number and we take everything into account, so we are trying to put downward pressure on the things we can control,” he added.
Last Wednesday, Trump signed the law that ends the longest government shutdown in US history and extends funding until January 30, looming another confrontation between Democrats and Republicans next year.