We came across some information disturbing US markets apart from FED/FOMC. Here's a summary :

------------------------

The fuss around a U.S. government shutdown arises from Congress's failure to pass the necessary appropriation bills by the fiscal year's start, which is October 1st, leading to a lapse in federal funding. Here's a short summary of the issues, reasons, and consequences:

Issues:

Funding Lapse: Government operations require annual funding through 12 appropriation bills. Without this, non-essential government functions cease.

Essential vs. Non-Essential: Essential employees like law enforcement continue to work without pay, while non-essential employees are furloughed.

Reasons:

Political Disagreements: Shutdowns often stem from political standoffs, particularly over spending levels, policy riders, or issues like border security or healthcare funding.

Failure to Agree: Congress must agree on funding, and if they cannot, or if the President does not sign the bills into law, a shutdown occurs.

Consequences:

Federal Workers and Services: Millions of federal workers, including military personnel, do not receive paychecks until funding is restored, though they are entitled to back pay. Services like passport processing, national park maintenance, and federal loans are delayed or halted.

Economic Impact: Shutdowns can reduce GDP growth, cause disruptions in sectors dependent on government operations, and lead to a loss of confidence in government stability.

Public Services: Programs like SNAP (food assistance) and WIC could face delays or cessation, affecting vulnerable populations immediately. Health inspections and environmental protections might also be compromised.

Long-term Effects: Repeated shutdowns can alter the perception of federal jobs and affect the attractiveness of government employment, particularly among younger workers.

Government shutdowns are not only about immediate operational disruptions but also carry broader implications for public trust, economic stability, and the perception of governmental competence.