Government Shutdown Enters Sixth Day Amid Failed Funding Votes
The U.S. government shutdown has extended into its sixth day as Senate efforts to pass stopgap funding bills continue to falter. Both Republican and Democratic proposals have repeatedly failed to secure enough votes, deepening the impasse in Washington.
Trump Signals Potential for ‘Sharp Measures’ if Shutdown Persists
National Economic Council Director Kevin Hassett warned on CNBC’s “Squawk Box” that President Donald Trump could begin taking “sharp measures” starting Monday if the government shutdown continues following the Senate’s upcoming votes on funding bills.
“If the government shutdown is not resolved, then I would guess that team in the Oval is going to start taking sharp measures,” Hassett said Monday morning.
Hassett Blames Democrats for Potential Federal Employee Layoffs
Hassett placed responsibility on Democrats for any federal workers who may lose their jobs due to reduction-in-force orders triggered by the shutdown. The Trump administration has maintained that the current shutdown will result in thousands of layoffs, contrasting with previous shutdowns where furloughs were more common.
“Democrats will be to blame for any government worker that loses their job,” Hassett said.
Senate Prepares for Renewed Votes on Competing Funding Bills
After multiple failed attempts, the Senate is set to vote again after 5:30 p.m. ET on two competing measures: a “clean” Republican resolution to resume funding at current levels through late November, and a Democratic plan that includes additional health-care funding and other provisions. President Trump, along with senior officials, is expected to monitor these votes closely from the Oval Office, hoping for a resolution that ends the shutdown.
Political Deadlock Continues as Parties Fail to Compromise
The deadlock between Republicans and Democrats remains entrenched, with neither side willing to concede on key issues. This stalemate has prolonged the shutdown and increased uncertainty about the federal workforce’s future.
FinOracleAI — Market View
The ongoing government shutdown poses significant risks to economic stability and investor confidence. The potential for sharp executive actions, including mass federal layoffs, could disrupt government services and dampen consumer sentiment.
- Opportunities: A swift resolution could restore market confidence and stabilize federal operations.
- Risks: Prolonged shutdown may lead to widespread federal layoffs, reduced government spending, and heightened political uncertainty.
- Escalation of executive measures could increase market volatility.
- Continued partisan deadlock raises risk of extended shutdown duration.
Impact: Negative. The failure to resolve funding disputes promptly is likely to weigh on economic activity and markets, with potential for further disruptions if sharp measures are enacted.
