U.S. Treasury Secretary Scott Bessent issued a stark warning, asserting that the ongoing government shutdown is not only politically motivated but also poses serious economic issues for America, including the stalling of major Initial Public Offerings (IPOs).
Government Shutdown Affecting IPOs On Wall Street
In an interview with Fox Business on Monday, Bessent directly blamed Democrats, stating, “the American people are being held hostage by Chuck Schumer’s poll numbers.”
Beyond the immediate political theater, Bessent detailed significant economic repercussions. He revealed that substantial IPOs are currently on hold because the Securities and Exchange Commission (SEC) is closed, preventing necessary filings.
This gridlock, he emphasized, transcends mere politics, evolving into a “serious national security issue” as vital financial activities are paralyzed.
Bessent Says Will Create ‘Assets, Not Debt’
Bessent also touched on broader economic strategies under President Donald Trump.
He reiterated the administration’s commitment to creating “assets, not debt,” referencing strategic investments such as the stake acquired in Intel Corp. (NASDAQ:INTC) and the Department of Defense’s 15% stake in MP Materials Corp. (NYSE:MP).
The latter move is part of an “Operation Warp Speed” initiative aimed at securing America’s rare earth mineral supply chain, breaking China’s “stranglehold” on refining and processing these critical resources. These longer-term economic goals, however, face immediate headwinds from the domestic political impasse.
Mainstream Media Is ‘Downplaying’ The Shutdown
The Secretary also confirmed that while military personnel would receive their paychecks on Oct.15, the Treasury is having to “shuffle things around” and “prioritize payments” using tariff revenue, holding back on other government expenditures to do so.
With federal workers furloughed and national institutions like Smithsonian museums closed, Bessent accused the mainstream media of “downplaying the shutdown” to “avoid embarrassing Democrats,” further exacerbating the public’s understanding of the situation’s severity.
Price Action
On Monday, the S&P 500 index ended 1.56% higher at 6,654.72, whereas the Nasdaq 100 index advanced 2.18% to 24,750.25. Dow Jones also gained 1.29% to 46,067.58.
The futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading lower on Tuesday.
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