Treasury Secretary Scott Bessent told CNBC that U.S. economic growth could be hurt by the government shutdown.
Said Bessent: “This isn’t the way to have a discussion, shutting down the government and lowering the GDP. We could see a hit to the GDP, a hit to growth and a hit to working America.”
President Trump said on Truth Social that he would meet today with budget director Russell Vought — “he of Project 2025 fame” — “to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut.”
He added: “I can’t believe the Radical Left Democrats gave me this unprecedented opportunity.”
Bloomberg: “The president’s comments escalate a threat from Republicans to use the shutdown to slash the federal bureaucracy. The White House had threatened to announce job cuts as soon as Thursday.”
Wall Street Journal: “Russell Vought has been planning for this moment for years.”
A new Washington Post poll found significantly more Americans blame President Trump and congressional Republicans for the shutdown than Democrats, though many say they are not sure.
Important takeaway: A large majority support Democrats’ call to extend federal health insurance subsidies in general — though just under half support the party demanding this if it extends the government shutdown.
“We, as Republicans, have never had so much moral high ground on a government funding bill in our lives… I just don’t see why we would squander it.”
— Sen. Kevin Cramer (R-ND), quoted by Semafor, opposing plans by the Trump administration to permanently lay off workers.
Gallup: “Americans’ confidence in the mass media has edged down to a new low, with just 28% expressing a ‘great deal’ or ‘fair amount’ of trust in newspapers, television and radio to report the news fully, accurately and fairly.”
“This is down from 31% last year and 40% five years ago.”
Paul Krugman: “If America still had a fully functioning democracy, Donald Trump’s speech Tuesday to the assembled generals would have ended his presidency.”
“Trump treated the event like a political rally and was clearly taken aback by the refusal of the audience to applaud or laugh at his jokes. Delivering a nakedly partisan speech to a mandated assembly of military officers was a gross violation of the Hatch Act. The content —telling the officers to be ready to use force against U.S. citizens — was clearly an impeachable offense. In an earlier era, Trump’s incoherent ranting would have paved the way for his immediate removal from office under the 25th Amendment.”
Americans say it’s harder to afford their groceries now than it was a year ago, a warning sign for President Trump and Republicans, in the latest Axios Vibes survey.
Rep. Madeleine Dean (D-PA) cornered Speaker Mike Johnson (R-LA) in a hot mic moment:
DEAN: The president is unhinged. He is unwell.
JOHNSON: A lot of folks on your side are too.
DEAN: Oh my god, please. That performance in front of the generals?
JOHNSON: I didn’t see it.
DEAN: It’s so dangerous! Our allies are looking elsewhere. Our enemies are laughing. You have a president who is unwell.
ProPublica: “A Pennsylvania businessman who had Tom Homan on his payroll led companies to believe his connections to the future border czar could help advance their bids for government work.”
“As President Donald Trump calls for military intervention in cities across the nation, gun violence and major crime are at a record low in America’s largest city, the New York Police Department announced Wednesday,” ABC News reports.
“There were fewer shootings in NYC during the first nine months of the year than in the same time period of any prior year.”
“The record-low number of shootings coincided with a broader drop in crime, including in the subways.”
“President Donald Trump’s surprising performance among Black Americans and younger voters helped him win the popular vote in the 2024 election. Those constituencies are still waiting for a return on their investment,” Politico reports.
“The unemployment rate for Americans between the ages of 16 and 24 has jumped to 10.5 percent from 9 percent since Trump returned to the White House, a period that coincided with a marked decline in their participation in the labor force. Black joblessness has also climbed, with federal workforce cuts and a broad slowdown in hiring contributing to the rise. And both groups saw their paychecks drop through the first half of the year, despite an acceleration in weekly earnings for workers overall.”
“Republicans must use this opportunity of Democrat forced closure to clear out dead wood, waste, and fraud.”
— President Trump, on Truth Social, promising “billions of dollars” in savings.
Britain had 66 enormous new American flags specially made for President Trump’s state visit last month — after U.S. officials complained the U.K.’s existing collection featured the wrong shade of red, the Daily Telegraph reports.
Punchbowl News: “There are some informal bipartisan talks centering around Democrats’ chief demand: an extension of the Obamacare enhanced premium tax credits. We took you inside that big bipartisan Senate floor huddle in Wednesday’s Midday edition.”
“But they’re just that — talks. Party leaders aren’t directly involved. There’s no Senate ‘gang’ to break the deadlock. And the fundamentals of the showdown haven’t changed.”
“Democrats say they can’t trust Republicans and the White House to clinch a bipartisan deal on Obamacare subsidies without a forcing mechanism. Republicans maintain that negotiations can’t take place until the government is reopened. Even then, getting Hill Republicans on board with an Obamacare deal would be a major challenge, with conservatives opposing any extension. Which brings us back to square one — Democrats’ desire for a guarantee that Thune simply can’t give them.”
A new Emerson College survey of the Virginia Governor’s race finds Abigail Spanberger (D) leading Winsome Earle-Sears (R), 52% to 42%, with 5% of voters undecided.
Those who have already voted early in Virginia report voting for Spanberger, 60% to 38%, while likely voters who have yet to cast a ballot support Spanberger 50% to 43%.
Senate Majority Leader John Thune laid out a path to end the government shutdown, saying he is willing to discuss the shape of future health care negotiations if a “critical mass” of Democrats say they are willing to support a House-passed funding bill in return, Politico reports.
Said Thune: “I keep telling them: When they have eight or 10 — preferably 10, or more — when they have a critical mass, let me know if there’s a conversation they want to have.”
“He insisted he would not negotiate on the substance of an extension while the government is closed.”
“The Trump administration is laying out a set of operating principles that it wants universities to agree to in exchange for preferential access to federal funds,” the Wall Street Journal reports.
“The memo demands that schools ban the use of race or sex in hiring and admissions, freeze tuition for five years, cap international undergrad enrollment at 15%, require that applicants take the SAT or a similar test, and quell grade inflation.”
Taegan Goddard is the founder of Political Wire, one of the earliest and most influential political web sites. He also runs Political Job Hunt, Electoral Vote Map and the Political Dictionary.
Goddard spent more than a decade as managing director and chief operating officer of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. Senator and Governor.
Goddard is also co-author of You Won - Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. In addition, Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country.
Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.
Goddard is the owner of Goddard Media LLC.
