The ongoing U.S. government shutdown has now reached its seventh day, and there appears to be no resolution in sight. As the impasse continues, traders remain optimistic about the possibility of two additional rate cuts from the Federal Reserve later this year. The prolonged shutdown is creating uncertainty in various sectors, yet market participants are still holding onto the expectation that the Fed will respond with further monetary easing. This situation highlights the complex interplay between government operations and economic policy, as the shutdown’s impact on the economy could influence the Fed’s decision-making process. With no clear end to the shutdown, all eyes are on the developments in Washington and how they might affect future economic conditions.
