Trump Claims Democratic Shutdown Cost ‘At Least Two Points’ of GDP, Demands Powell Cut Rates

President Donald Trump on Friday insisted that Democrats’ ongoing shutdown of the Department of Homeland Security is modeled after last year’s wider government shutdown, which he claimed cost the U.S.A. at least two points in GDP.

The president also launched an attack against Federal Reserve Chairman Jerome Powell, demanding immediate interest rate cuts and branding him “the WORST.”

Trump’s assertion that a government shutdown would reduce annualized real GDP growth by two percentage points is backed by reports from last year. A Congressional Budget Office analysis during the peak of the 2025 shutdown estimated an eight-week interruption in federal operations would lower fourth-quarter 2025 GDP growth by two points, with a potential permanent economic loss of up to $14 billion due to unrecovered work hours.

Private firms such as Goldman Sachs and EY-US have similarly highlighted that each week of a government shutdown typically reduces annualized economic growth by 0.2 percentage points.

The current “mini form” shutdown began on February 14, disrupting funding for agencies including the Federal Emergency Management Agency, the Transportation Security Administration, and the Coast Guard.

Democrats have described the funding pause as necessary in response to the deaths of two U.S. citizens, Alex Pretti and Renee Good, during federal immigration operations in Minneapolis last month.

In a 10-point report delivered to the White House, Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries stated they would not vote for the funding without specific “common-sense” reforms for immigration enforcement. These include requiring officers to present judicial warrants before entering private property, banning masks for Immigration and Customs Enforcement and Customs and Border Protection agents, and mandating that agents display name tags and identification.

Meanwhile, Trump’s criticism of Powell coincided with a Justice Department criminal investigation into the Fed chair over his testimony about the $2.6 billion renovation of the Federal Reserve’s headquarters. Powell has previously called the probe a “pretext” for political pressure intended to force him on interest rate decisions.