As the federal government shutdown in the United States enters its 35th day, the deadlock in Congress is increasing tensions in the economy and financial markets.
The shutdown is expected to extend to a 36th day due to a lack of agreement between Democrats and Republicans, surpassing the 35-day record set during Donald Trump’s 2018-2019 term.
Republicans are proposing a short-term budget extension (CR) for fiscal year 2025. This bill aims to give a permanent budget deal until November 2026.
While Republicans argue the subsidies are “no longer necessary,” Senate Majority Leader John Thune and House Speaker Mike Johnson said they are open to discussing a reformed version but oppose including it in the budget.
BLS Won’t Release New Report Until Government Opens
U.S. Labor Secretary Julie Dremer said the shutdown has directly impacted employment data, and that Bureau of Labor Statistics (BLS) reports cannot be released until the government reopens. This denies investors and analysts access to critical indicators such as nonfarm payrolls, the unemployment rate, and wage growth.
This lack of data makes it difficult to predict the Fed’s monetary policy decisions and leaves markets mired in uncertainty.
Government shutdowns may have an impact on the cryptocurrency market, including Bitcoin, due to economic uncertainty and data flow pauses.
*This is not investment advice.
