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Political Stalemate Results in $11 Billion Loss, Highlighting Deep-Rooted Flaws in the System

Political Stalemate Results in $11 Billion Loss, Highlighting Deep-Rooted Flaws in the System

Bitget-RWA2025/11/24 05:20
By:Bitget-RWA

- U.S. government shutdown in late 2025 caused $11B economic loss, disrupted critical data collection for CPI and employment reports. - Treasury Secretary Bessent highlighted recession risks in rate-sensitive sectors but emphasized services-driven inflation, not Trump trade policies. - "One Big, Beautiful Bill" tax cuts aim to boost incomes, with analysts projecting 0.4pp growth boost despite Fed rate constraints. - Shutdown intensified calls for congressional reform to end gridlock, as prediction markets

The United States experienced a government shutdown spanning 43 days at the end of 2025

, The interruption , such as the October consumer price index (CPI) and jobs reports, since agencies like the Bureau of Labor Statistics (BLS) were unable to gather the required information during the closure. Although Bessent remained hopeful about economic growth in 2026, the shutdown highlighted weaknesses in the federal budgeting process and its broad impact on financial markets and policy-making.

The BLS

and instead relied on alternative data sources for partial updates. This lapse in data collection postponed the release of crucial inflation and employment statistics, making it harder for policymakers and investors to assess the economy’s condition. The shutdown further , with Bessent observing that interest rate–sensitive sectors, such as housing, had already entered a downturn. Nevertheless, he stressed that the broader economy remained robust, rather than attributing it to President Donald Trump’s trade actions.

Political Stalemate Results in $11 Billion Loss, Highlighting Deep-Rooted Flaws in the System image 0
Bessent designed to curb inflation, such as reduced energy costs and tax reductions under the Trump administration’s “One Big, Beautiful Bill.” This legislation, which features tax relief for overtime, tips, and car loans, is anticipated to increase real earnings for American workers and help ease some cost-of-living burdens. to economic growth in the first half of 2026, though the Federal Reserve’s elevated interest rates—partly a result of the stimulus—could moderate the overall effect.

Despite these obstacles, the administration remains optimistic about the nation’s economic direction.

that 2026 would be a “blockbuster year” for economic expansion, though he acknowledged a “hiccup” in the fourth quarter due to the shutdown. Bessent also referenced trade agreements, such as lower tariffs on food imports, as means to reduce prices and boost demand. Meanwhile, , including Kalshi’s recent $1 billion fundraising at an $11 billion valuation, underscore the ongoing balance between innovation and regulatory compliance in the financial sector.

The economic consequences of the shutdown have strengthened demands for legislative change.

the filibuster as a way to prevent future shutdowns, though he declined to speculate on the political viability of such a move. As the 2025–2026 election cycle in prediction markets, the relationship between fiscal policy, regulatory transparency, and market trends will continue to play a pivotal role in shaping the U.S. economic outlook.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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