Goldman Sachs analysts predict that the U.S. government is "more likely than not" to shut down later this year due to spending disagreements, which could temporarily impact economic growth by reducing it by 0.15-0.2 percentage points per week, with past shutdowns having minimal impact on equity markets.
The White House warns that a government shutdown at the end of the month could have damaging consequences for the economy, national security, and the American public.
Wall Street feels defensive as the US national debt surpasses $33 trillion and a government shutdown looms, potentially worsening the economy's current issues and increasing the likelihood of a recession, with the shutdown estimated to cost the US economy $6 billion per week and shave GDP growth by 0.1 percentage points in the fourth quarter of 2023.
Summary: Investors shouldn't worry about a government shutdown as it is unlikely to significantly impact the stock market.
The US government faces a potential shutdown if Congress fails to agree on funding past September 30, which would be the first shutdown since December 2018 and could result in a longer standoff between parties.
If Congress fails to provide funding for the fiscal year starting Oct. 1, many U.S. government services would be disrupted, federal workers would be furloughed without pay, and essential workers would remain on the job without pay.
Millions of federal employees and military personnel face the prospect of a government shutdown, which would result in financial hardships for American families, disruptions in services, and potential harm to the economy.
The federal government is likely to face a shutdown that will affect various services, disrupt workers' pay, and create political turmoil as Republicans demand deep spending cuts.
The impending federal shutdown, combined with other economic challenges such as rising gas prices, student loan payments, and reduced pandemic savings, is expected to strain American households and potentially weaken economic growth in the last quarter of the year.
A potential government shutdown in Washington could have far-reaching consequences, causing financial losses for millions of people, disrupting medical research and food access, delaying regulatory efforts, and hampering the Biden administration's agenda on energy, climate, and infrastructure.
The federal government is at risk of shutting down on October 1 if a last-minute spending deal is not reached, potentially leading to delayed paychecks for millions of federal workers and negative effects on the economy, according to the AP.
If lawmakers fail to pass a budget by October 1, the government will shut down and it could have several negative impacts on the economy, such as furloughed workers, difficulty in obtaining mortgages, and the Federal Reserve lacking important data for monetary policy decisions.
The U.S. travel economy stands to lose nearly $1 billion per week during a government shutdown, as six in 10 Americans would cancel trips or avoid flying, according to analysis by the U.S. Travel Association. The previous government shutdown in 2018-2019 cost the economy $11 billion, with national parks, monuments, and tourism-dependent towns taking a significant hit. Closure of government-run museums and monuments in Washington, D.C., during a shutdown also leads to substantial economic losses. The hassle of traveling is exacerbated, further discouraging tourism and spending.
Google searches about the potential government shutdown in the US are increasing, with a particular interest in how it would affect Social Security, veterans' benefits, and the US dollar.
A U.S. government shutdown would negatively impact its credit assessment and highlight the weakness of its institutional and governance strength compared to other top-rated governments, according to Moody's, although the economic impact would likely be short-lived.
A government shutdown in the US may cause the Federal Reserve to delay an interest rate hike and could impact the recent strength of the dollar, analysts have warned. The shutdown could also lead to a delay in key inflation data, which would affect Fed policy decisions, and may put pressure on consumer spending.
A government shutdown could result in 90% of staff at the U.S. Department of Education being furloughed, potentially causing delays for borrowers seeking loan forgiveness and certain changes to their loans.
Over 1 million military members and furloughed civilian employees are at risk of going without pay during the government shutdown, which would have significant global impacts on military readiness and send a dangerous message to adversaries, according to Pentagon spokesperson Sabrina Singh.
The possibility of a government shutdown in the U.S. could have negative implications for the crypto industry's regulatory progress and projects, similar to the effects seen in the previous shutdown in 2018 and 2019, with delays in approvals and a withdrawal of a bitcoin ETF application.
The U.S. is on the verge of a government shutdown as Congress debates spending levels and aid to Ukraine, which could potentially affect government operations and federal workers' paychecks.
The impending government shutdown may have an impact on the financial markets, according to Kristina Hooper, Chief Global Market Strategist at Invesco.
A brief government shutdown is unlikely to significantly slow down the economy, but a prolonged shutdown could hurt growth and potentially impact President Biden's re-election prospects.
There is a 90% chance of a government shutdown, according to Goldman Sachs, as the deadline looms and little progress has been made in negotiations.
A government shutdown would severely impact the U.S. Securities and Exchange Commission's ability to approve IPOs and respond to market turmoil, according to its chair, Gary Gensler.
The U.S. government is facing a potential shutdown if Congress does not resolve a deadlock by this weekend, which would result in furloughs or unpaid work for federal workers and military employees, but experts believe the impact on the economy and stock market will be short-lived.
Summarizing the text given, the US is preparing for a government shutdown as the funding deadline approaches, with potential consequences including delays in work authorizations for migrants, impacts on the Federal Aviation Administration, uncertainty in the House regarding a procedural vote, and concerns about the effects on small businesses and border security.
A potential government shutdown in the US may lead to a delay or absence of the September consumer-price index report, which would complicate decisions for financial markets and the Federal Reserve.
Congress averted a government shutdown with a temporary deal that keeps funding at current levels until Nov. 17, providing relief for millions of Americans and avoiding a potential furlough of federal employees and delayed food assistance programs, but leaving some, like House Speaker Kevin McCarthy, facing challenges and excluding additional U.S. aid to Ukraine.
