**US Treasury Secretary Janet Yellen Warns of Dire Economic Impact as Government Shutdown Extends into November 2025**
The ongoing US government shutdown, now stretching into its sixth week, is prompting serious economic concerns. Treasury Secretary Janet Yellen has issued warnings about the growing economic toll, which is affecting financial markets and federal employees alike. As the shutdown continues deeper into November 2025, its ramifications on GDP, federal spending, and market stability are becoming increasingly severe.
### Economic Consequences of the Prolonged Shutdown
With federal operations stalled and key government programs halted, the US economy risks significant damage. Notably, thousands of federal workers remain unpaid, exacerbating financial strain across communities. The Congressional Budget Office estimates that this extended shutdown could reduce the US GDP for the fourth quarter of 2025 by 1 to 2 percentage points.
Markets have reacted to Yellen’s warnings with noticeable fluctuations. Both gold and the US dollar have exhibited volatility as investors grapple with this ongoing fiscal uncertainty. Michael Feroli, Chief US Economist at J.P. Morgan, commented, “Each week, a shutdown subtracts about 0. There could be a sentiment channel as well if the duration of the shutdown enters uncharted territory.”
In response to the shutdown, Treasury Secretary Yellen stated, “With these determinations, the Treasury Department will suspend additional investments … as expressly authorized by law,” signaling adjustments in fiscal management amid the crisis.
### Bitcoin Gains Spotlight Amid Financial Turmoil
Interestingly, amid this economic uncertainty, Bitcoin has attracted increased attention. The current US government shutdown has now surpassed the previous record set in 2018-2019, extending beyond 35 days. Historical shutdowns have frequently led to significant fluctuations across key macro-assets, with Bitcoin emerging as a notable player.
According to recent data from CoinMarketCap:
– Bitcoin is trading at $103,061.43
– Its market capitalization stands at $2.06 trillion
– Bitcoin holds a 59.37% market dominance
– Trading volume has declined by 35.6% over the past 24 hours
– Despite these trends, Bitcoin experienced a 1.45% price increase within the last day, though it shows a 14.99% decrease over the past 30 days
### Looking Ahead
As the government shutdown continues with no clear resolution in sight, economic risks remain elevated. The impacts on GDP, federal worker livelihoods, and financial market stability underscore the urgency of restoring government operations. Meanwhile, investors continue to seek safe havens, with Bitcoin and traditional assets displaying notable market movements.
Stay tuned for further updates as the situation develops.
https://bitcoinethereumnews.com/tech/yellen-warns-severe-economic-impact-from-prolonged-us-shutdown/
