The ongoing shutdown of the federal government could negatively impact America’s GDP, Treasury Secretary Scott Bessent said in a CNBC interview published on Oct. 2.
On Oct. 1, the federal government shut down after Democrats and Republicans failed to agree on a deal to pass a short-term plan to keep the government funded. The House of Representatives has approved a funding proposal, but the Senate has yet to pass it.
Senate Democrats opposed the plan, demanding that it include the rollback of Medicaid cuts made in the One Big Beautiful Bill Act, signed into law by President Donald Trump in July.
They also want to extend enhanced subsidies under the Affordable Care Act, which were introduced amid the COVID-19 pandemic and scheduled to expire by year-end. Republicans have rejected the demands and have asked that the government reopen before negotiating on health care policies….