【What does the partial shutdown of the U.S. government mean for the financial markets?】
The U.S. government has officially entered a partial shutdown, which has limited short-term impact on the economy, but its effects on the financial markets are mainly reflected in expectations and sentiment.
The shutdown means an increase in uncertainty regarding fiscal and policy execution, delays in some economic data and regulatory actions, and a temporary decrease in market risk appetite. Historical experience shows that if the shutdown duration is controllable, the impact is mostly short-term; however, if prolonged, volatility significantly increases.
Against the backdrop of high interest rates and high debt, the shutdown is more easily interpreted as a signal of escalating political gamesmanship, prompting funds to shift towards safe-haven assets and increasing short-term volatility in global markets.
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