US Treasury Secretary Maintains Optimism on 2026 Economy

Economic Impact of Government Shutdown

The recent US government shutdown, lasting 43 days, resulted in significant economic losses amounting to $11 billion (approximately Rp 183.7 trillion). This substantial financial impact has raised concerns about the overall economic stability. However, US Treasury Secretary Scott Bessent remains confident about the economic outlook for 2026.

Factors Driving Economic Optimism

Bessent cited lower interest rates and recent tax cuts as key factors contributing to his positive outlook. He believes these measures will create a strong foundation for economic growth while keeping inflation in check. The Treasury Secretary acknowledged that certain sectors, such as housing, have been affected by the changing interest rate environment.

Sectoral Performance and Inflation Concerns

While expressing optimism about the overall economic trajectory, Bessent noted that the service sector has been a significant contributor to inflationary pressures. He maintained that lower energy prices will help alleviate these pressures and lead to broader price reductions across the economy.

Forward-Looking Statement

Bessent emphasized his strong confidence in the 2026 economic outlook, stating, "I am very, very optimistic about 2026. We have laid the groundwork for strong growth without inflation." This statement reflects the administration's commitment to maintaining a balanced economic approach that supports growth while managing inflationary risks.