TechFlow news, September 29 — According to Jinshi Data, Huatai Securities research report stated that the U.S. Congress has still not passed the short-term funding bill. If no compromise is reached by October 1, the U.S. government will temporarily shut down. This marks the second time the U.S. government faces a shutdown risk since Trump returned to the White House. Unlike the government shutdown turmoil in March this year, both Republicans and Democrats now believe a shutdown would benefit their respective parties, especially the Democrats, who view compromising on the short-term funding bill as harmful and unbeneficial in the near term. Given the current political environment, we believe the probability of both parties reaching an agreement before October 1 is low, making a government shutdown the baseline scenario. Roughly estimated, an average one-week U.S. government shutdown would drag quarterly GDP by about 0.1 percentage points. This shutdown crisis may further intensify concerns over U.S. political polarization and fiscal sustainability. Combined with recent stronger economic data, U.S. Treasury volatility could rise, and if the dollar continues to rebound, market liquidity may turn tight in the short term.
Risk Disclosure: This website's content is not investment advice and offers no trading guidance or related services. Per regulations from the PBOC and other authorities, users must be aware of virtual currency risks. Contact us / support@techflowpost.com ICP License: 琼ICP备2022009338号
