U.S. Treasury Secretary Says Government Shutdown Has Begun Hurting Economy

October 30, 2025 - U.S. Treasury Secretary Beshent stated that the ongoing federal government shutdown, now in its fourth week, has begun to impact the U.S. economy. This assessment aligns with concerns raised by the Federal Reserve, which, while cutting interest rates a day earlier, warned that the "shutdown of the federal government will weigh on economic activity while it persists". The shutdown has halted the release of many key government economic statistics, creating uncertainty for policymakers and directly pressuring consumer and business activity.

An analysis from ICBC International underscores that historical experience shows a non-linear positive correlation between the duration of government shutdowns and economic losses; as a shutdown persists, the economic damage—particularly the proportion of permanent losses that are difficult to recover—amplifies. The Treasury Secretary's remarks provide official confirmation of the growing risks the shutdown poses to the economic landscape.