U.S. Treasury Secretary Scott Bessent said Monday that the ongoing federal government shutdown, now in its 13th day, is beginning to have a noticeable effect on the national economy, as reported by Newsmax.

“This is getting serious. It’s starting to affect the real economy,” Bessent said during an interview on Fox Business Network’s Mornings with Maria.

He did not provide specific details on the extent of the economic impact but confirmed that federal operations across multiple departments are now being disrupted.

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According to Bessent, the Treasury Department has been forced to shift funds and prioritize essential services, including payments for U.S. military personnel.

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To maintain military paychecks, the government has withheld payments to other federal workers and services, including the Smithsonian museums and the National Zoo in Washington, D.C.

“We are having to shuffle things around. We are having to furlough workers here in DC and around the country,” Bessent said.

U.S. President-elect Donald Trump’s nominee to be Treasury Secretary Scott Bessent arrives for a meeting with Sen. Mike Crapo (R-ID) in the Dirksen Senate Office Building on December 10, 2024.

The Treasury Secretary also warned that the shutdown is delaying federal aid to farmers, an issue he has raised repeatedly in recent weeks. The halt in funding has affected agricultural support programs, leaving some rural areas uncertain about when they will receive assistance.

Bessent noted that several departments are now operating with limited staff, which has slowed government responses and processing times for key services. The U.S. Department of Agriculture, for instance, has reduced operations tied to crop insurance, rural development programs, and federal farm loans.

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In addition to the disruption in public services, the shutdown has delayed the release of official Treasury economic data. “Official U.S. Treasury economic data will also be released after the shutdown ends,” Bessent confirmed.

The federal government entered a partial shutdown nearly two weeks ago after Congress failed to pass a funding measure by the fiscal year deadline. The standoff has resulted in thousands of federal workers being furloughed or working without pay.

While essential operations such as air traffic control, border protection, and the military continue to function, many national parks, museums, and agencies have closed or reduced services.

Economists have cautioned that a prolonged shutdown could slow growth, particularly if federal payments, contracts, and consumer spending are disrupted further.

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The Treasury Department has not provided a projected timeline for when funding negotiations may be resolved. Bessent said discussions between congressional leaders are ongoing but offered no indication of a breakthrough.

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