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.
Potential risks including an autoworkers strike, a possible government shutdown, and the resumption of student loan repayments are posing challenges to the Federal Reserve's goal of controlling inflation without causing a recession. These disruptions could dampen consumer spending, lead to higher car prices, and negatively impact business and consumer confidence, potentially pushing the economy off course.
Lawmakers are dealing with a potential government shutdown as oil prices rise above $90 per barrel and housing data is expected, all ahead of the September FOMC meeting where the trends in inflation and the housing market will influence the Fed's decision on interest rates.
Treasury Secretary Janet Yellen believes that there are no signs of an economic downturn, but warns that a government shutdown could undermine economic momentum.
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.
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.
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.
President Biden warns of the potential consequences of a government shutdown, urging Republicans in Congress to take action to prevent it.
The publication of major U.S. economic data, including employment and inflation reports, will be suspended indefinitely if the federal government shuts down due to lack of funding, leaving policymakers, investors, and businesses in the dark for key decision-making.
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.
The federal government is on the verge of a shutdown, with potential consequences for various areas of governance.
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.
U.S. Treasury Secretary Janet Yellen warns that a potential government shutdown would harm economic progress, impacting key programs for small businesses and children and delaying infrastructure improvements.
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 United States government is at risk of a partial shutdown, which could impact the progress of crypto bills and hinder the functioning of financial regulators.
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.
The chaos in Washington and uncertainty surrounding a possible government shutdown could make it less likely for the Federal Reserve to raise interest rates again this year, as the economy and inflation appear to be cooling off.
