How US Government Shutdown Could Impact Interest Rates, Dollar | Vantage on Firstpost | N18G

The U.S. government shutdown has entered its second day — the first in seven years — and it’s already emerging as a major political and economic flashpoint. With Congress deadlocked, blame is being exchanged across party lines. While essential workers continue without pay, non-essential staff have been furloughed. But the ripple effects go far beyond Washington.

Key economic data releases have been halted, leaving the U.S. Federal Reserve with limited visibility as it prepares for interest rate decisions. Experts warn the central bank could be “flying blind.” At the same time, the U.S. dollar faces growing pressure. A prolonged shutdown may prompt the Fed to cut rates, weakening the currency further. President Trump’s tough stance, including threats of mass federal layoffs, signals a deeper crisis ahead — with implications not only for American workers but for global markets watching closely.

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US Dollar Weakens | US Government Shutdown | MUFG Bank | Donald Trump | Democrats vs Republicans | Economic Data | Layoffs in US | Firstpost | World News | News Live | Vantage | Palki Sharma | News

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