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.
There is a significant chance of a government shutdown as lawmakers on Capitol Hill are divided on reaching a resolution, with Senator Ted Cruz suggesting that President Biden and Senator Schumer may want a shutdown for political gain.
The potential government shutdown threatens to deprive the Federal Reserve of crucial data on the labor market and inflation, which could hinder its ability to make informed decisions about the economy and interest rates.
Despite rising gas prices, Americans remain optimistic about inflation easing, as expectations for inflation rates in the year ahead have fallen to the lowest level since March 2021, according to a consumer sentiment survey from the University of Michigan. However, concerns are surfacing about a potential government shutdown, which could dampen consumer views on the economy.
Lawmakers in Congress are facing a potential government shutdown at the end of the month, with the possibility of a shutdown becoming increasingly inevitable due to the lack of progress in negotiations and disputes between House Speaker Kevin McCarthy, hardliners in his party, and the US Senate.
Lawmakers in Congress have less than two weeks to reach a deal on funding the government past September 30, and there is a risk of a partial government shutdown if an agreement is not reached. Some GOP groups are discussing a 30-day stopgap spending patch with border security measures attached, but a shutdown is expected to be short-term.
A full government shutdown in the US is likely at the end of the month, which could impact the Federal Reserve's decision to raise interest rates in November, according to analysts at PIMCO.
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.
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.
Investors should not be overly worried about the potential government shutdown's impact on the market, as historical trends indicate that any weakness will likely be a buying opportunity from a short-term trading perspective.
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.
Lawmakers are preparing for a possible government shutdown as President Joe Biden's administration advises agencies to update their shutdown plans, while congressional Republicans debate on how to proceed before the current spending plan expires.
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.
A government shutdown on October 1 is likely, but it is not expected to have a significant impact on financial markets or cause an economic recession.
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 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 potential government shutdown looms as Congress struggles to pass a funding bill by Saturday night, which could result in federal workers going without pay and essential services continuing while non-essential services halt.
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 White House is preparing for a possible government shutdown on October 1, with senior officials drawing up plans for essential personnel, as lawmakers struggle to find a funding solution.
The impending government shutdown may have an impact on the financial markets, according to Kristina Hooper, Chief Global Market Strategist at Invesco.
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.
Congress is facing a potential government shutdown as the Republican-led House and Democratic-controlled Senate struggle to reach a short-term funding agreement before the looming deadline.
A government shutdown is looming as lawmakers have until the end of the day Saturday to reach a deal or the U.S. will face one of the largest government shutdowns in history, impacting millions of workers and services.
A government shutdown could lead to disruptions in food aid, air travel, and financial markets, and increase the risk of cyber attacks on critical financial infrastructure, according to Karen Petrou of Federal Financial Analytics Inc.
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.
The government is on the brink of a shutdown because Congress has not passed the necessary spending bills, and it remains uncertain how it will reopen as there is a disagreement over spending between right-wing Republicans and the Senate and White House controlled by Democrats.
A potential government shutdown in the United States could lead to furloughs, paused paychecks, and a significant economic impact, potentially costing upwards of $1 billion a week, while the stock market and interest rates may not be heavily affected.
The U.S. government is on track to shut down at 12:01 a.m. on October 1 unless lawmakers pass a continuing resolution or federal budget by September 30, and the biggest obstacle to reaching an agreement lies with a small group of House conservatives who are demanding deep spending cuts that won't pass the Democratic-controlled Senate.
Congress passes a short-term spending bill to avert a government shutdown, which President Biden signed into law, funding the government through November 17.
Investors will be closely watching market reactions to a late deal to avert a government shutdown, as well as key data on the labor market this week, while concerns about higher interest rates and the impact on the economy weigh on stock futures.
Major market averages are mixed on Monday morning as Congress avoids a shutdown for now, with the bond selloff continuing; however, the US averted a shutdown just before the deadline, which will keep the government running until November 17th.