Top White House officials issue dire economic warnings if shutdown drags on

Top White House economic officials delivered stark warnings Sunday that the federal government shutdown could trigger a negative quarter for the U.S. economy, as growth risks being cut in half.

U.S. economic growth in the fourth quarter could turn negative if the federal shutdown drags on, White House economic adviser Kevin Hassett said in an interview aired Sunday.

Hassett, speaking to the CBS show Face the Nation, noted that a shortage of air traffic controllers was causing major travel delays in the run-up to the Thanksgiving holiday.

"Thanksgiving time is one of the hottest times of the year for the economy... and if people aren't traveling at that moment, then we really could be looking at a negative quarter for the fourth quarter," he said.

Treasury Secretary Scott Bessent also warned Sunday that the ongoing government shutdown is taking an escalating toll on the U.S. economy, saying growth could be reduced "by as much as half" this quarter if the impasse continues.

"We've seen an impact on the economy from day one, but it's getting worse and worse," Bessent said during an interview on ABC's "This Week" program.

Sunday marked the 40th day of the shutdown, which has sidelined federal workers and disrupted food aid, parks and travel, while air traffic control staffing shortages threaten to derail plans during the busy Thanksgiving season later this month.

U.S. flights could 'slow to a trickle'

More than 2,000 flights were canceled and over 8,000 delayed across the U.S. on Sunday, according to flight tracking website FlightAware.

The U.S. Department of Transportation and the Federal Aviation Administration's (FAA) recently announced a 10-percent capacity reduction at 40 major airports across the country starting Friday, aiming to ease staffing pressures and reduce airspace safety risks.

"It's only going to get worse," Transportation Secretary Sean Duffy told CNN on Sunday. "I look to the two weeks before Thanksgiving. You're going to see air travel be reduced to a trickle."

Airlines for America, which represents major carriers, said staffing issues had disrupted more than 4 million passengers' travel plans since October 1, when the shutdown began.

By November 14, it estimated a daily U.S. economic impact of $285 million to $580 million.

During the shutdown, 13,000 air traffic controllers and 50,000 security screeners have been forced to work without pay.

(With input from agencies)