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 prolonged shutdown is causing greater damage than initially projected. “The impact on the economy has been far more severe than we expected due to its extended duration,” Hassett told Fox Business. He highlighted that the shutdown has halved the forecast for US GDP growth in the fourth quarter compared to earlier estimates.
The government shutdown, which began at midnight on October 1, has become the longest in US history, surpassing all prior closures, as reported by NBS News on November 5. Bloomberg noted on November 6 that the shutdown is inflicting up to $30 billion in weekly economic losses, intensifying instability and raising concerns about inflation and employment challenges. Over 650,000 federal workers have been left unpaid, sparking societal tensions.
