Trump Administration Warns Of $15 Billion Weekly GDP Loss, Over 43,000 Job Cuts If Shutdown Persists: Report

The Trump administration has reportedly warned the shutdown could cut billions from weekly GDP and leave 43,000 more people jobless if it lasts a month.Shutdown Could Cost $15 Billion WeeklyA White House memo, obtained by Politico, outlines the potential economic fallout from the shutdown. The memo, prepared by the Council of Economic Advisers, is expected to guide the Republican Party’s response to the shutdown and will be shared with Republican lawmakers.The memo highlights the potential loss of $15 billion in GDP per week, with a month-long shutdown potentially leading to an additional 43,000 unemployed individuals. The memo excludes the 1.9 million federal civilian employees who are either furloughed or working without pay, with about 80% based in the Washington area.A month-long shutdown is projected to cut consumer spending by $30 billion, with half of the losses falling on federal employees and the remainder spilling over to other sectors, according to the memo.Federal Services To Be Hit Hard, No Impact On Bond RatingsThe memo also warns that a government shutdown would halt funding for the The Women, Infants and Children program in October, delay services for Social Security and Medicare recipients, and block annual funding for Head Start programs.Meanwhile, the Fitch Ratings stated that while the U.S. government shutdown has no immediate impact on the country's ‘AA+'/Stable sovereign rating, it underscores persistent policymaking weaknesses and ongoing “political brinkmanship” over budget matters.Government Shutdown Begins, Markets Brace For ImpactThe U.S. government officially entered a shutdown on Oct. 1, marking the 21st closure since 1976 after the Senate failed to pass a continuing resolution late Tuesday. With no stopgap deal in place, funding expired at midnight, forcing the furlough of hundreds of thousands of federal workers and halting many government operations. While the headline news introduces a new layer of uncertainty for markets, historical data suggests that these events are often short-lived and have a limited long-term impact on equities. For investors, looking past the political turbulence is often key. On Wednesday, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) accused Republicans of pushing a dirty trick healthcare plan during the first day of the U.S. government shutdown.Price Action: Even amid media hype, financial markets remained calm during shutdowns. The S&P 500 closed 0.34% higher on October 1, while NASDAQ climbed 0.42%, as per data from Benzinga Pro. READ NEXT: Nearly 100,000 Federal Workers Set To Resign In Largest Mass Resignation In US History: Report Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.Image Via Shutterstock