Market Predicts Limited Impact from U.S. Government "Shutdown," but Risk of Prolonged Duration Cannot Be Ruled Out

Odaily News: The House of Representatives adjourned without being able to review the appropriations bill, leading the U.S. federal government to enter a technical, partial "shutdown" state at 00:00 local time on January 31. Analysts point out that although this shutdown is expected to be short-lived, it once again highlights the structural dilemma of U.S. fiscal politics. In recent years, temporary funding, short-term extensions, and marginal shutdowns have become the norm in Congressional budget negotiations, with government operations frequently hampered by political divisions. Currently, the market generally believes that this technical shutdown will have a limited direct impact on financial markets and economic operations. However, if subsequent Congressional negotiations face obstacles again, there is a risk that the shutdown could be prolonged and its scope of impact expanded. (CCTV News)