The US government shutdown is entering its second week, effective October 4. The Senate voted today to reject two stopgap budget proposals submitted by both Democrats and Republicans, effectively ending any possibility of reopening federal agencies. Congress is in recess until Monday, when leadership is expected to force a fifth vote on the House-passed proposal that would fund the government until November 21. Related News: Two Top Officials at the Federal Reserve, Jefferson and Logan, Discussed Interest Rate Cuts and the U.S. Economy As the stalemate deepens, the effects of the government shutdown are also expanding. The White House is reportedly increasing pressure on Democrats, preparing to announce imminent layoffs for public sector workers and freezing billions of dollars in funding for programs in Democratic-held states. Hundreds of thousands of public employees were furloughed and many non-critical services were suspended after federal funds ran out Wednesday morning. However, the “cold war” between congressional leadership and the White House continues. It appears unlikely that the parties will find a path to reopening the government in the short term through their own negotiations alone. *This is not investment advice. Continue Reading: New Development in the US Government Shutdown Crisis – Next Critical Date Set
