US government shutdown impacts federal data and markets
A US government shutdown began on October 1, 2025, hindering the Federal Reserve's access to key economic data amid considerations for interest rate cuts. The event has led to a decline in the dollar, positioning it for its worst annual drop in 22 years, while prediction markets forecast the shutdown lasting nearly two weeks. Investors have turned to bitcoin as a safe haven, driving its price higher.
The US government shutdown commenced on October 1, 2025, creating immediate challenges for economic policymakers. According to reports, the Federal Reserve now lacks crucial data necessary for its deliberations on potential interest rate cuts. This data shortfall stems from halted operations at federal agencies responsible for collecting and disseminating economic indicators.
Economic analyses highlight the tangible damages from such shutdowns. Historical and current numbers illustrate impacts including delayed payments to federal workers, disrupted services, and broader ripple effects on GDP. For instance, past shutdowns have cost the economy billions, with estimates varying based on duration and scope.
In financial markets, the dollar has weakened significantly in response to the shutdown. It is now on track for its worst annual decline in 22 years, reflecting investor concerns over political gridlock and its implications for US fiscal stability.
Prediction markets provide insight into the expected length of the impasse. Traders anticipate the shutdown will persist for nearly two weeks, suggesting prolonged uncertainty unless Congress reaches a funding agreement soon.
Amid these developments, bitcoin has emerged as a perceived global safe haven. Its price rose as investors sought alternatives to traditional assets affected by the US political turmoil, underscoring shifting dynamics in global finance during times of domestic instability.
The shutdown's effects extend beyond immediate data gaps, influencing broader economic confidence and international perceptions of US reliability. Federal officials have emphasized the need for swift resolution to mitigate long-term harm.