What is the US Government Shutdown (how has it affected markets in the past)?

They ousted Speaker McCarthy. The shutdown issue will be back in the headlines around mid-November.

1️⃣ US GOVERNMENT SHUTDOWN

A government shutdown essentially means the budget is not passed through Congress.

In such a case, the federal government ceases to finance certain services. Essential situations related to security and national security (like the military, air traffic control, and law enforcement) are exceptions, while many other services can be halted or reduced.

So, what impact does it have on the economy?

2️⃣ IMPACT ON THE ECONOMY

There are 2 impacts on economy?

❶ Economic Slowdown: A prolonged government shutdown may cause the economy to slow down due to the cessation of government services and federal employees going on leave, leading to a decrease in consumer spending.

❷ Financial Markets: Uncertainty related to the shutdown causes volatility in the financial markets. If the shutdown is associated with disagreements over the debt ceiling, concerns about the US defaulting on its debt can intensify, leading to significant…