Huatai Securities: U.S. Government Shutdown Impact Milder Than Last Time

Odaily Huatai Securities research report suggests that at noon Beijing time on January 31, 2026, following the shutdown in October last year, the U.S. government has shut down again. However, unlike the October shutdown, the two parties have reached most compromises. The brief shutdown occurred only because the House of Representatives was in recess and unable to vote promptly. The government is expected to reopen as early as February 2 after the House passes the funding resolution. Since this shutdown occurred over a weekend and is short-lived, with only some agencies affected, it is anticipated to have no impact on the economy, markets, or data releases. However, repeated government shutdowns highlight domestic division and political polarization in the U.S., which may accelerate the process of de-dollarization in the medium to long term. (Jin10)