(CNN) - The government shutdown and threat of U.S. default before the debt ceiling was raised "inflicted completely unnecessary damage (to) our economy," President Barack Obama said Thursday morning at the White House.
He said it slowed the economy's growth and set back employers' plans to hire.
"Just the threat of default ... increased our borrowing costs, which adds to our deficit," he said.
"We'll bounce back from this," Obama added.
"America is the bedrock of the global economy for a reason ... because we keep our word and we (meet) our obligations."
The way business is done in Washington has to change to make a positive difference in the economy, he added.
That starts, he said, with taking a balanced approach to a responsible budget.
Congress should "cut out things we don't need," "close corporate tax loopholes that don't create jobs," and "free up resources for things that do help the country grow," like research and infrastructure, he said.
He passed along a simple message for "all the dedicated and patriotic federal workers" affected by the recent turmoil in government: "Thank you. Thanks for your service. Welcome back. What you do is important. It matters."