The United States of America is facing yet another uncertainty after President Donald Trump and Congress failed to strike an agreement to keep government programmes and services running by Wednesday's deadline.
As reported by news agency PTI, roughly 7,50,000 federal workers are expected to be furloughed, some potentially fired by the Trump administration. Many offices will be shuttered, perhaps permanently, as Trump vows to "do things that are irreversible, that are bad" as retribution.
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
"I Am A Material Man In A Material World': Quantum Advisors' Ajit Dayal On NDTV Profit Ignite
Economic Fallout Expected
Due to Trump's deportation agenda, the economic fallout is expected to ripple nationwide. Trump, who privately met with congressional leadership this week, appeared unable to negotiate any deal between Democrats and Republicans to prevent that outcome. The government is slated to release its monthly jobs report on Friday, though it's uncertain if it will actually be issued.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
While financial markets have mostly remained unfazed during previous shutdowns, a Goldman Sachs analysis suggests this time might be different, partly because there are no signs of broader negotiations underway.
In preparation for a funding lapse, the Trump administration, through the Office of Management and Budget (OMB), has reportedly instructed agencies to prepare for more than typical furloughs. This includes plans for mass firings of federal workers, which aligns with the administration's broader goal, spearheaded by its Department of Government Efficiency (DOGE), to significantly shrink the size of the federal government.
The administration has also warned it may focus cuts on programs important to Democrats. Trump stated the administration could focus on "cutting vast numbers of people out, cutting things that they like, cutting programmes that they like," as reported by news agency PTI.
What Stays Open and What Could Close
The Medicare and Medicaid health care programmes are expected to continue, though staffing shortages could mean delays for some services. The Pentagon would still function. And most employees will stay on the job at the Department of Homeland Security.
As agencies sort out which workers are essential, or not, Smithsonian museums are expected to stay open at least until Monday. A group of former national park superintendents urged the Trump administration to close the parks to visitors, arguing that poorly staffed parks in a shutdown are a danger to the public and put park resources at risk.
During Trump's first term, the nation endured its longest-ever shutdown, 35 days, over his demands for funds Congress refused to provide to build his promised US-Mexico border wall.
In 2013, the government shut down for 16 days during the Obama presidency over GOP demands to repeal and replace the Affordable Care Act, also known as Obamacare. Other closures date back decades.
(With PTI inputs)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
