Welcome back to live. Now from Fox. I’m Stephanie Quinn. You, I did want to share this live. Look with you of the US Capitol.
as the federal government. shutdown enters into its second day. We have a live clock indicating just how long that shutdown is going on right now. It stands at 1 day 11 hours and about 31 minutes. We did bring you some remarks from the house GOP leadership including house Speaker.
Mike Johnson as they are. asking the Democrats to stop this. stalemate saying that it’s impacting. every day, citizens and to talk more on this, I do want to bring in Joe lavor, Who is the counselor? to treasury secretary Scott besan to talk more on this and Joe.
We appreciate you joining us here on live now from Fox. Thank you for having me. so, a lot of questions, involving this and we’ve been getting a lot of viewer questions, but I want to start with this. What is the impact of the federal government shutdown? to the Department of Treasury?
well, the the impact I want to just say, broadly speaking is, uh, is significant the White House? had posted the work that the CBO had put out that suggests that we’re losing. 400. million. dollars of economic income and output per day.
That’s certainly a significant number that will compound over time uh and it’s pausing right now. undo and unnecessary. hardship for Middle. and lower income families. uh, in treasury like the other agencies, uh, non-essential personnel, uh, have been furloughed but even the people who are working in essential roles and most of the roles are very important, even the people who are fur followed obviously, Uh, they’re not getting paid, so it’s a it’s an unnecessary and unfortunate.
Uh, situation. we’re in obviously no fault of our own uh, the other half of the of the Congress, if you will, uh, has blocked us from passing a clean continuing resolution.
As they had done, uh, 13 times in the prior 4 years. So I’m hopeful uh, you know, the work that we’re trying to do to get the government reopened happen soon. but we’ll see what happens.
And, and you were mentioning that. every day citizens are really being hit hard by this and is the most recent job report, you know, indicated uh, you know, just maybe concerning numbers right there, The economy though has been growing, you know, what’s your biggest concern? And what is if anything? the treasury Department doing to mitigate these concerns Well the Economy is doing well.
Uh, because of capital spending and that’s a function of President Trump’s leadership.
and vision. and passing the 1, big beautiful bill, in other words, companies knowing that the bill would be passed. It was passed early and the expensing for Capital. retroactive to the beginning of the year. has encouraged companies to start spending on Capital.
investing in their businesses, which is great because that always leads to Stronger hiring. faster productivity and Rising worker Wages. That’s the Hallmark of the first Trump president. say, however, the labor market which you alluded to is not that strong because it was weakening dramatically under Joe Biden’s. Uh, presidency.
In fact, 2 million jobs that were initially reported in the last 2 years, no longer exists. So the Trump Administration. did not uh, inherit a very good labor market quite the opposite, market, quite the opposite of very poor labor market but again, because of President, Trump’s policies, we’ve seen the capex turn around occur, which means any soft patch in hiring will prove temporary.
But again, we need the government to reopen to fully function and help the economy move forward because that uncertainty is at the margin going to impact businesses who can’t plan and produce, and higher as much as they’d like, because I’m not sure when things are going to get back to normal. so, as you’re looking ahead, you know, what’s your biggest concern at the shutdown continues and if it does Well, my biggest concern are the people I’m sure this is the the biggest concern by the president and the secretary as you’ve gotten.
A lot of middle. and lower income People many of which live paycheck to paycheck, they will get their money, they will get paid retroactively but if you have a car payment, or a credit card bill, or a heating bill, a cool, you know, electrical bill, if you you can’t pay your bills, if you’re not getting paid, uh, and again, this is a is unnecessary. uh, a clean continuing resolution. will keep the government. Operational.
And then both parties can sit and debate, whatever it is, they want to debate.
Uh, but right now you know they unfortunately the the government is closed. uh no fault of the Republican Party, clearly and hopefully that will change soon. But you know, I you know that that’s anybody’s guess at this stage. you know, you were talking about the jobs market and the concern there especially for lower to middle class income.
Americans in terms of the various job sectors. and the industries out there. What industries are Are you concerned? That could be the hardest hit. well, 1 of the areas that has surprised.
has been relatively resilient and surprisingly so has been Construction. uh, because interest rates are very high by the fed’s own admission interest rates are very high. and I think, companies have decided to keep their construction workers on the payroll because they’re excited about what the Trump administration’s likely to do in terms of building making things. as president Trump himself is a building over time. We’re going to see much many more manufacturing jobs as we reindeer and bring Capital back into the US.
You’ll see growth Obviously in financial services, transportation wholesale, and Retail. that are very highly consumer sensitive And we’ve actually seen very, very good consumer spending and I think that again is reflective of confidence that us households have in the president’s policies. We’ve got the no tax on tips, that guidelines is almost done. That is going to put people. put money in people’s pockets working-class.
who are going to get refunds next year. so that will help. Drive consumers. Spending your drive consumer spending that creates demand for product which increases output which increases jobs and income, So all there’s a lot of great things. that are happening with the Trump Administration.
we want the economy to reach its full potential for everyone. Uh, but we also you want the government to get back to doing its business. Uh, we just need the other side to kind of come to its senses. Uh and and help us reopen the government and get back to Lifting. get back to lifting living standards for all Americans and lowering the cost of of living as president Trump has done to this point with getting costs of Essentials.
Like gasoline energy used, broadly, speaking lower. and Joe, we also have you know, posed this conversation to our viewers inviting them to ask their own questions that I did want to. share 1 from. Drew right here from Clovis, California. asking how are Financial systems including the FED affected by the shutdown.
so, at treasury, uh, all essential Personnel are here and we’re obviously working. Uh, 24/7. And as it relates to the Fed they’re not part of the appropriation process, which is afflicting, the government shutdown.
So, the Federal Reserve which is responsible for managing them the country’s money supply. Uh, they are fully operational.
All right, so thank you drew to that question. And we do have 1 more For You. Joe, we’re just going to, uh, get that up and running right here. uh, but uh, as as we do await that and, and now it’s right here, it’s actually a high school that, uh, is getting involved, which is great. We like to see our young folk getting involved in these discussions.
Uh, Ravenswood, High School wondering do government officials get paid during a shutdown know, a government officials do not get paid and this includes. people in the military. Um, um law enforcement. and uh, you know, all the FAA. you know of, um, air traffic control is except Spectrum in a lot of key.
areas, Uh, people are not getting paid. I mean they’re working but they’re not working and getting paid at the moment, they will get paid at some point. But again, that’s the point. we’re creating unnecessary. pain.
because people need to be paid to meet their bills.
And Joe 1, last question before we let you go, we have this clock right here have this lower hand side of your screen, sharing with our viewers. Just how long this government shutdown is going on for We’re now at 1 day, 11 hours and 39 minutes and the clock. continues to tick, you know, how significant is a single day when it comes to the government being shut down and the impact it has on our economy. Well, there are certainly an emotional toll, which is, which is very hard to quantify, but as I alluded to earlier, it’s hundreds of millions of dollars a day according to the Congressional, budget office.
So it’s, it’s not insignificant quite the opposite. It’s significant and these problems could compound the longer it goes, I’m an optimist. So I’m hopeful that things will. will be resolved satis. and soon.
but it’s still anyone’s guess as to when that’s going to happen. and Joe to You were talking about. the hundreds of millions of dollars. that that, you know, cost the US economy because of this shutdown, The longer that it goes on does it take even more effort to try and get the economy back on track? It could.
it certainly could. I mean the I mean I’m an optimist. So the 1 thing that I think is very important is that President Trump foundationally has built a a very robust and strong economy. but why not have it Reach its potential sooner? Why are we causing undue stress?
and duress? on American families? uh, by having this shutdown persist a clean resolution as I said earlier, has been passed 13 times in the prior 4 years by democrats.
I don’t know why we can’t have a 14th. clean continuing resolution and then if there’s other issues that people wanted to debate, fine, we could do that then.
But now is not the time. So I’m hopeful uh, we’ll come through this, okay? But there’s going to be some short-term pain. No fault of our own well, ever The Optimist you are Joe and we appreciate you taking the time to join us here.
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