US Government's Longest Shutdown To End Soon: When Will Things Get Back To Normal?
The shutdown lasted 42 days, halting many federal services. It resulted in thousands of workers going without pay.
The United States Congress voted on Wednesday to end the longest government shutdown in the country’s history. The House of Representatives approved the deal 222–209, restoring pay for federal workers and funding key programmes like food assistance.
The Senate had already passed the measure on Monday, paving the way to end the shutdown that started on Oct. 1. US President Donald Trump is expected to sign it into law, officially reopening the government.
The shutdown lasted 42 days, halting many federal services. It resulted in thousands of workers going without pay. The new bill will help to fund the government through Jan. 30, adding about $1.8 trillion a year to the $38 trillion debt of the country.
House Speaker Mike Johnson praised the deal, saying it would restore confidence in government operations. At a Veterans' Day event in Arlington, Virginia, Trump said, “We’re opening up our country. Should have never been closed.”
When Will Things Get Back To Normal?
Once Trump signs the bill into law, the US government will officially reopen after a 42-day shutdown. This means that besides the restoration of the pay of federal workers, some key economic reports may start to appear soon, according to a Reuters report.
Economists at Morgan Stanley expect the September non-farm payrolls report to be released within days. The data had already been collected before the government closed.
According to Reuters, unemployment data may not be available anytime soon, as the government did not conduct the “household survey” due to the shutdown. Unlike the “establishment survey,” which measures payroll jobs, the household survey does not go back to fill in missing months. This gap could affect the US Federal Reserve’s next policy move for the December meeting on rate cuts.
Based on the 2013 shutdown, several key reports will be delayed. October inflation and consumer spending data may not be ready for the Fed’s Dec. 9–10 meeting, the Reuters report added, citing Morgan Stanley’s analysts. October retail sales may also be delayed.
While the end of the shutdown is expected to bring short-term relief for the people and market investors, it won’t be able to immediately restore economic clarity.
