Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Pay Attention to This Date in the US: There is a Possibility of a Government Shutdown – Here’s How It Will Affect the Economy

Pay Attention to This Date in the US: There is a Possibility of a Government Shutdown – Here’s How It Will Affect the Economy

CryptoNewsNetCryptoNewsNet2025/09/25 09:36
By:en.bitcoinsistemi.com

A government shutdown is on the agenda in the US, effective midnight on September 30, if Congress and the White House fail to reach an agreement on the federal budget.

That possibility puts the economy under new pressure eight months into President Donald Trump's second term.

The Trump administration's tariffs imposed as part of its global trade war have driven up prices, while widespread public sector layoffs and mass deportations have squeezed the labor market. Now, a looming budget crisis could bring federal agencies to a standstill.

“The economy is quite fragile right now. In a more resilient era, even a prolonged lockdown wouldn't be a major blow. But under current conditions, it could be the factor that could drag the economy down,” said Mark Zandi, chief economist at Moody's Analytics.

In the event of a federal shutdown, millions of public employees will lose their salaries, and some will be forced to continue working without pay. While Social Security and Medicare payments will continue, citizens' access to many public services will be disrupted. It has also been reported that the Women, Infants, and Children (WIC) program, which provides food assistance to low-income families, will no longer be accepting new applications.

Past lockdowns have shuttered national parks and museums, halted loans and permits for small businesses, and disrupted food safety inspections. Experts estimate that each week the federal government is closed represents a loss of about 0.1 percentage points of the country's quarterly economic growth.

The 2018-2019 shutdown, which lasted five weeks during Trump's first term, caused a significant decline in GDP. Ryan Sweet, Chief Economist at Oxford Economics, stated that such prolonged shutdowns negatively impact not only public spending but also private sector investment and consumer spending.

This year's lockdown risk comes at a time when the economy is already under pressure due to high tariffs, a slowing labor market, and mass deportation policies. Fed Chair Jerome Powell has described the economy as “challenging,” and experts warn that a prolonged lockdown could also erode confidence in financial markets.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

The Importance of Infrastructure-Connected Real Estate in Upstate New York

- Upstate NY's $9.8M FAST NY grant transforms Webster's 300-acre brownfield into a high-tech industrial hub via infrastructure upgrades. - The project attracted $650M private investment for a dairy facility, projected to create 250 jobs by 2025, highlighting infrastructure's role in corporate site selection. - Residential property values in Webster rose 10.1% post-grant, demonstrating industrial site improvements' spillover effects on real estate markets . - NY's $283M FAST NY program and $300M POWER UP in

Bitget-RWA2025/11/29 16:00
The Importance of Infrastructure-Connected Real Estate in Upstate New York

The Strategic Opportunities Presented by Investing in Municipal Infrastructure in Upstate New York

- Webster , NY's $9.8M FAST NY-funded Xerox campus redevelopment is transforming a 300-acre brownfield into an industrial hub by 2025, creating 250 jobs and boosting local real estate values. - Strategic infrastructure upgrades in roads, utilities , and multimodal corridors, paired with BOA designation benefits, demonstrate how PPPs and public funding can revitalize brownfields while reducing development risks. - Upstate NY's $507.7B 2024 municipal bond surge and $2.4B Thruway Authority deal highlight infr

Bitget-RWA2025/11/29 16:00
The Strategic Opportunities Presented by Investing in Municipal Infrastructure in Upstate New York

The Importance of Industrial Real Estate in the Evolving Post-Pandemic Economy

- Post-pandemic industrial real estate thrives via infrastructure-driven growth, with shovel-ready sites and PPPs boosting returns. - Structural demand from nearshoring, e-commerce (22% retail share by 2026), and AI logistics ensures low vacancy rates near ports and hubs. - Proptech adoption reduces maintenance costs by 12% and increases tenant retention by 15%, reinforcing long-term viability. - Expected Fed rate cuts and U.S.-China tariff clarity could drive pre-leasing growth, with vacancy rates project

Bitget-RWA2025/11/29 16:00
The Importance of Industrial Real Estate in the Evolving Post-Pandemic Economy