¡Hola amigos! The US government entered a shutdown on Wednesday, and global markets are feeling the tremors. 📉 Here’s why it matters beyond DC:
Data Blackout Woes
Key agencies like the Bureau of Labor Statistics have paused operations, delaying crucial reports such as the monthly jobs numbers and the Consumer Price Index. Without this data, the Federal Reserve faces blind spots ahead of its policy meeting later this month. 😬
Investor Anxieties
According to Luke Bartholomew of Aberdeen Investments, the political standoff is adding fuel to investor concerns. A downgrade of US sovereign debt and ongoing tariffs already had risk appetite wobbling—now the shutdown piles on. 💼
GDP and Confidence Hits
Analysis by Oxford Economics shows a partial shutdown can shave 0.1–0.2 percentage points off GDP growth each week. Back in 2018–2019, a 35-day shutdown knocked consumer confidence down by 7% in the University of Michigan survey. 📊
Federal Workers in Limbo
About 750,000 federal employees face furlough, and threats of mass firings could turn a temporary pause into a longer disruption—hurting spending and morale.
With global risk appetite already fragile, a prolonged US shutdown could reshape investment strategies and slow growth far beyond America’s borders. Stay tuned—this shutdown is turning into a Netflix-level cliffhanger! 🍿
Reference(s):
cgtn.com
