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Details: ht
Washington's budget negotiations have entered a critical stage, as the U.S. federal government faces a severe situation that could lead to a shutdown starting October 1. If Congress fails to reach a temporary funding agreement by September 30, some government departments will be forced to close, which not only affects public services but may also result in key economic indicators not being released on schedule, bringing unprecedented uncertainty to global investors.
As the countdown to the shutdown enters the final 72 hours, the political deadlock becomes increasingly evident. The two parties remain divided on issues such as healthcare subsidies, immigration policy, and defense spending, with the atmosphere of negotiations becoming more tense. Trump stated to the media that he does not rule out the possibility of a government shutdown if necessary, while criticizing the Democrats' proposal.
However, the potential impact of this government shutdown may be greater than in the past. What worries the market the most is that the U.S. Department of Labor may not be able to release important economic data such as non-farm payrolls and the Consumer Price Index (CPI) on time. This data has always been a key indicator for investors to gauge economic trends and forecast monetary policy. If a "data black hole" occurs, it will severely affect decision-making and operations in the global financial markets.
Looking back at the 35-day government shutdown in early 2019, it had already caused a significant impact on the economy. Now, during a critical period of global economic recovery, if a similar situation occurs again, its effects could be even more far-reaching.
All parties are closely watching the upcoming developments in Congress, hoping to reach a consensus at the last moment to avoid a series of negative impacts caused by a government shutdown. However, as time ticks away, uncertainty continues to rise, and market participants must prepare for various possible scenarios.