Treasury Secretary Scott Bessent joins CNBC’s “Squawk Box” to discuss the latest developments on the federal government shutdown, impact on the U.S. economy, sticking points in negotiations between Democrats and Republicans, search for the next Fed chair, state of U.S. trade negotiations, and more.

JOE KERNEN, ‘SQUAWK BOX’ HOST: Okay. Mr. Secretary, day two. I guess I’ll start with what we’re hearing from OMB and or at least rumors of possible real action taken to do some things permanently during this shutdown within the next 48 hours or so. Can you shed any light on whether that’s really going to happen, or was it a bargaining chip for Republicans to get Democrats to agree to keep the government open? TREASURY SECRETARY SCOTT BESSENT: Well, Joe, let’s just step back for a minute and look how we got here. Chuck Schumer did the right thing in the spring and led the Senate to a clean CR. What we’ve got here is the House has the passed clean CR. The Republicans have the votes in the Senate. And he will not allow his members to come across. And what’s changed since then is, it’s his poll numbers, you know? So, you know, the president, Vice President Vance, Speaker Johnson, Leader Thune, they’re not negotiating with Chuck Schumer and Hakeem Jeffries. They’re negotiating with Representative Ocasio-Cortez, because she’s nipping at his heels. And, you know, so the American people are being held hostage by Chuck Schumer’s poll numbers. And, you know, we’re starting to see some of the moderate, the very few moderate members left in the Democratic Party in the Senate drift toward wanting a solution. Chuck Schumer’s blocking it. You know, when I look at Chuck Schumer and Hakeem Jeffries straight out of Brooklyn, makes me glad that I left New York in 2020. And your question about the shutdown, you know, this is a choice that Schumer and Hakeem Jeffries have made. And, you know, if they want to shut the government down, then there are ramifications.

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