The three major U.S. stock indexes closed in the red yesterday, and the initial value of the UM Consumer Confidence Index fell to 67.7, falling for the second consecutive month. The UAW has failed to reach an agreement with automakers, with 150,000 people planning a 45-day strike that could cost billions of dollars. Following the U.S. debt ceiling, there are reports of another federal government shutdown crisis!

Is it possible that the US government will temporarily shut down on 10/1?

Congress must allocate funds to 438 government agencies in the fiscal year that ends Sept. 30. If lawmakers do not pass these bills before the start of the new fiscal year, some government agencies will not be able to continue to operate normally. That is, if Congress does not approve a spending bill by the end of September, some government departments may be temporarily shut down, and the federal government Employees will be forced to take unpaid leave.

According to Reuters, there have been 14 shutdowns of the U.S. federal government since 1981, most of which lasted only a day or two. The most recent and longest, due to a security dispute at the U.S.-Mexico border, lasted 35 days in December 2018.

The House of Representatives will return from recess next Tuesday (9/19) before launching into a political debate over government spending cuts and the impeachment of US President Joe Biden. The White House Budget Office has urged Congress to quickly pass short-term financing measures to avoid a government shutdown at the start of the 2024 fiscal year on October 1.

The 9/20 interest rate decision meeting is the focus of market observation

The recently released Consumer Price Index (CPI) and Producer Price Index (PPI) both increased due to rising oil prices. The market has turned its attention to the Federal Reserve's interest rate decision on 9/20. Investors generally believe that the Federal Reserve will not adjust its interest rate policy stance this time.

But the focus will be on Fed Chairman Powell's post-meeting press conference to look for clues about the Fed's future policies.

According to data from CME FedWatch, the market generally believes that the Federal Reserve has reached the end of this interest rate hike and may start cutting interest rates in the middle of next year. Goldman Sachs also believes that if the U.S. government shuts down for a long time, it will affect the Federal Reserve's decision to raise interest rates.

Source: CME website

This article: The three major U.S. stock indexes closed in the black. Following the U.S. debt ceiling, there are reports of a federal government shutdown crisis! First appeared in Chain News ABMedia.