Incoming U.S. Treasury Secretary Bessent stated that while interest-rate-sensitive sectors are currently in a recession, the entire economy is not at risk of a broader downturn. He expressed confidence in growth prospects looking ahead to 2026, aiming to reassure financial markets amid mixed economic signals. Bessent highlighted that energy prices are declining, which is expected to reduce general price levels in the coming weeks, though he attributed persisting inflation largely to the services sector. In addition to his comments on recession risks, new reports indicate that a government shutdown has dealt a permanent $11 billion blow to the nation's GDP. These developments present a mixed macroeconomic picture, with specific fiscal challenges like the shutdown weighing against the administration's overall confidence in economic resilience. Market participants continue to monitor these indicators closely for their potential impact on risk assets. [Update 1] Added details regarding Bessent's dismissal of immediate economy-wide recession risks and the specific impact of a government shutdown, which reportedly caused a permanent $11 billion loss to US GDP.