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Treasury Secretary Bessent says U.S. GDP could take a hit from the shutdown

1. Economic growth may decline due to the ongoing government shutdown. 2. GDP rose at a 3.8% annualized rate, but shutdown risks stalling it. 3. A prolonged shutdown could significantly impact 750,000 federal workers. 4. Previous shutdowns had little effect; however, a long duration could harm growth. 5. Treasury Secretary criticized Democratic leaders for ineffectiveness in negotiations.

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FAQ

Why Bearish?

Market could react negatively due to potential growth slowdowns from the shutdown.

How important is it?

Risks to GDP and worker stability could affect investor sentiment and S&P performance.

Why Short Term?

Immediate concerns over government operations and GDP growth may not last long.

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