The ongoing US federal government shutdown, now in its third week, is projected to cost the economy up to $15 billion per week in lost output, according to a Treasury official. This clarification came after Treasury Secretary Scott Bessent initially overstated the impact, suggesting a daily loss of $15 billion. Bessent later corrected his statement, emphasizing the significant economic strain caused by the shutdown. The revised estimate is based on a report by the White House Council of Economic Advisers. Bessent warned that the shutdown is beginning to ‘cut into the muscle’ of the US economy, despite the sustained investment boom in sectors like artificial intelligence (AI). He attributed the economic momentum to President Donald Trump’s policies, including tax incentives and tariffs, which he compared to transformative periods in US history, such as the railroad expansion in the late 1800s and the internet boom of the 1990s. However, the shutdown has created a major obstacle to continued growth. The political deadlock in Congress over spending has intensified, with Trump threatening mass layoffs of federal workers. On Wednesday, a federal judge in California issued a temporary restraining order to halt the planned layoffs of 10,000 workers, following a lawsuit by labor unions. The judge ruled that the layoffs were ‘not ordinary’ and potentially illegal, especially as many employees were unaware of their termination due to inaccessible government email accounts during the shutdown.