The US Government on Brink of Shutdown.

The United States government is facing a potential shutdown starting October 1, 2025, if Congress fails to pass a funding bill. This has investors bracing for impact, with markets pricing in about 40 basis points of easing by year-end and a 90% probability of an October rate cut.

this is happening because of
Government Funding: Congress needs to pass a funding bill to keep the government running beyond October 1.

– Economic Impact: A prolonged shutdown could delay key economic data, complicating the Federal Reserve’s policy outlook

– Market Reaction: US stock futures are up, with investors balancing resilient economic data with hopes for further Fed easing.

According to the experts  government shutdown could have significant consequences, including:

– Delayed Economic Data: The release of the critical September employment report might be postponed.

– Federal Worker Furloughs: Non-essential federal workers might be furloughed, impacting various government services.

– Economic Uncertainty: A shutdown could add to economic uncertainty, potentially affecting market stability.

President Donald Trump is set to meet with congressional leaders to discuss extending government funding beyond the month-end deadline.

Senate Democrats are demanding that any legislation undo cuts to healthcare programs, adding to the challenge of reaching an agreement