U.S. Treasury Secretary: Although the U.S. government shutdown severely impacts the economy, it will still strengthen in 2026.

U.S. Treasury Secretary Scott Bessent ( stated in an interview this morning on 11/24 that the previous Trump administration's shutdown did indeed have a noticeable impact on the U.S. economy. However, he emphasized that there is currently no risk of a nationwide recession and forecasted that strong economic growth, without accompanying inflation, is expected in 2026.

The pressure of life is gradually easing, and the data is starting to improve.

In reviewing his analysis from March of last year, Besant pointed out that “immigration, interest rates, and inflation” were the three major factors that crushed American household economies, but the current situation has noticeably improved. He stated that after the government strengthened border controls, the massive wave of immigration has slowed down. Interest rates have also decreased, beginning to improve the housing affordability for the public.

He further emphasized that inflation is developing in a downward direction. October's housing sales reached the best record in three years, energy and gasoline prices have fallen, and medical costs are also expected to show a decrease. This year's Thanksgiving dining costs have hit a four-year low, with turkey prices dropping by 16%.

Besant stated that the burden of living for the American people is gradually easing, and it just takes time to prove.

The controversy over prices is escalating, and the effects of tariffs are being challenged.

In response to the host's mention of rising prices for foods such as coffee, bananas, and bacon, as well as data showing inflation is 2% higher than in April, Bessent denied that inflation is heating up and emphasized that the government will not dismiss the public's real feelings about high prices.

He cited research indicating that inflation in blue states is 0.5 percentage points higher than in red states, primarily due to the stricter regulations and higher energy costs in blue states. However, when the host emphasized that CPI data showed inflation rising from 2.3% to 3%, a clear divergence in their interpretations of inflation emerged between the two parties.

When it comes to tariff policy, the host questioned whether the cancellation of over 200 food tariffs would mean that tariffs would drive up prices. Besant responded that the prices of goods imported from abroad have not actually become significantly more expensive; the rise in prices is mainly driven by the service industry, not by imported goods. As for food prices, Besant believes that some food prices will decline within a few weeks to several months.

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The industry is showing weakness, and the government shutdown is said to be dragging down the economy.

Speaking of the economic situation, Besant admitted that the real estate and interest rate-sensitive industries are facing difficulties, and pointed the finger at the “longest government shutdown in history,” noting that the government shutdown caused a 1.5% impact on GDP, with 9,500 flights canceled, and criticized the Democrats for disregarding the economic cost to stop Trump.

However, he remains optimistic about the overall outlook and clearly states that the U.S. economy is not at risk of falling into recession.

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Policy focuses on income, optimistic outlook for 2026.

When talking about future economic trends, Besant expressed confidence in 2026 and mentioned that the government is promoting peace, tax, and trade agreements. He particularly emphasized that the “Great and Beautiful Act” will simultaneously improve prices and the actual income of the public, including tax exemptions for tips, overtime, social security benefits, as well as the ability to itemize deductions for loan interest on purchases of American cars.

He pointed out that most people have not yet adjusted their payroll withholding taxes, so a considerable refund is expected in the first quarter of 2026. After adjusting the withholding method in the future, the actual income from each paycheck will also increase.

In addition, he mentioned that Boeing is adding 1,000 positions in South Carolina and stated that it is possible to see new factories starting almost every week in the future.

If the government shuts down again, call for the abolition of obstruction in legislative proceedings.

When discussing whether the government might shut down again, the host mentioned that Bessent recently wrote an op-ed in The Washington Post, advocating for the end of the Senate's filibuster. Bessent responded that the outcome will be known on 1/30, emphasizing that this government shutdown has caused a 1.5% impact on GDP and a permanent loss of 11 million dollars, criticizing that this shutdown is not due to policy differences, but rather political obstruction.

He further stated that if the Democratic Party causes another government shutdown, the Republican Party should immediately abolish the filibuster and believes that Democratic lawmakers must respond to this position.

This article: U.S. Treasury Secretary: Although the U.S. government shutdown severely impacts the economy, it will still strengthen in 2026. First appeared in Chain News ABMedia.