{"id":55803,"date":"2025-11-09T11:08:21","date_gmt":"2025-11-09T15:08:21","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/u-s-government-shutdown-worsens-economic-strain-threatens-air-travel-while-treasury-secretary-bessent-predicts-inflation-relief\/55803\/"},"modified":"2025-11-09T11:08:21","modified_gmt":"2025-11-09T15:08:21","slug":"u-s-government-shutdown-worsens-economic-strain-threatens-air-travel-while-treasury-secretary-bessent-predicts-inflation-relief","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-government-shutdown-worsens-economic-strain-threatens-air-travel-while-treasury-secretary-bessent-predicts-inflation-relief\/55803\/","title":{"rendered":"U.S. Government Shutdown Worsens Economic Strain, Threatens Air Travel, While Treasury Secretary Bessent Predicts Inflation Relief"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>The ongoing <strong>U.S. government shutdown<\/strong> is severely impacting the economy, with Treasury Secretary Scott Bessent warning it is &quot;getting worse and worse&quot; and could cost the nation up to <strong>$15 billion weekly<\/strong>.<\/li>\n<li>U.S. elections are reflecting deep-seated public frustration with the government&#39;s inability to solve problems, evidenced by a recent rebuke of President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> and the shutdown becoming the <em>longest in U.S. history<\/em>.<\/li>\n<li>Air travel faces significant disruptions, as Transportation Secretary Sean Duffy announced a <strong>10% reduction in flights<\/strong> across 40 high-volume U.S. airports, with potential cuts escalating to <strong>20%<\/strong> if the shutdown persists, severely impacting major airlines like American Airlines (<a href=\"\/stock\/AAL\">AAL<\/a>), Delta Air Lines (<a href=\"\/stock\/DAL\">DAL<\/a>), Southwest Airlines (<a href=\"\/stock\/LUV\">LUV<\/a>), and United Airlines (<a href=\"\/stock\/UAL\">UAL<\/a>).<\/li>\n<li>Despite the shutdown&#39;s economic drag, Treasury Secretary Bessent maintains an optimistic outlook on inflation, predicting consumer prices will begin to decline in the coming months, attributing this progress to President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>&#39;s policies.<\/li>\n<\/ul>\n<p>The prolonged <strong>U.S. government shutdown<\/strong>, which began on October 1st, is intensifying its negative impact on the American economy, according to Treasury Secretary <strong>Scott Bessent<\/strong>. Bessent stated that the shutdown is &quot;starting to cut into muscle&quot; and its economic fallout is &quot;getting worse and worse&quot;. He estimated the shutdown&#39;s cost to the U.S. economy could be as high as <strong>$15 billion weekly<\/strong>, a clarification from earlier reports suggesting a daily figure. This fiscal impasse is reportedly hindering overall economic growth, even amidst a wave of investment into the U.S. economy, and has led to a noticeable drop in small business confidence.<\/p>\n<p>Adding to the nation&#39;s woes, recent U.S. elections have underscored a profound public dissatisfaction with the government&#39;s effectiveness. Voters are deeply frustrated with the perceived inability of their government to address critical issues, a sentiment that led to a recent electoral rebuke of President Trump. This shift in voter sentiment, just 12 months after a period of Republican dominance, highlights a narrowly divided nation quick to reject incumbents seen as failing to improve their lives. The current federal shutdown, now recognized as the <em>longest in U.S. history<\/em>, is widely cited as tangible evidence of a government that is &quot;literally not working&quot;.<\/p>\n<p>The government shutdown&#39;s consequences are also severely affecting the nation&#39;s transportation infrastructure. U.S. Transportation Secretary <strong>Sean Duffy<\/strong> has warned that air travel will be significantly reduced, potentially to a &quot;trickle&quot;. Effective immediately, the Federal Aviation Administration (FAA) is implementing a <strong>10% reduction in flights<\/strong> across 40 &quot;high volume&quot; U.S. airports. This drastic measure is a direct response to the strain on air traffic controllers, who have been working without pay since the shutdown began, leading to rising absenteeism. Duffy indicated that these cuts, which could escalate to <strong>20%<\/strong> if the shutdown continues, are necessary to maintain safety standards. The reductions are expected to cause widespread disruptions for both cargo and commercial travelers, particularly as the busy Thanksgiving holiday travel period approaches, impacting major carriers such as American Airlines (<a href=\"\/stock\/AAL\">AAL<\/a>), Delta Air Lines (<a href=\"\/stock\/DAL\">DAL<\/a>), Southwest Airlines (<a href=\"\/stock\/LUV\">LUV<\/a>), and United Airlines (<a href=\"\/stock\/UAL\">UAL<\/a>).<\/p>\n<p>Despite the immediate economic and logistical challenges posed by the shutdown, Treasury Secretary Bessent offered a more optimistic outlook on the inflation front. He expressed confidence that the U.S. is making &quot;substantial progress on inflation&quot; and anticipates consumer prices will begin to &quot;come down over the coming months&quot;. Bessent credited President Trump&#39;s policies for this improvement, specifically citing efforts to curb &quot;Biden inflation&quot; and a decline in energy prices. He also noted that housing prices, typically a lagging indicator, are expected to follow suit. Bessent projects that 2026 and 2027 will be &quot;great years&quot; for the economy, with the market already pricing in a &quot;substantial probability of rate cuts&quot; in the near future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The ongoing U.S. government shutdown is severely impacting the economy, with Treasury Secretary Scott Bessent warning it is 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