Yellen Warns Severe Economic Impact from Prolonged US Shutdown
The post Yellen Warns Severe Economic Impact com. Key Points: Yellen warns severe economic impact as US shutdown continues. Shutdown prolongs into November 2025. Significant market reactions and government stress observed. US Treasury Secretary Janet Yellen warns that the ongoing government shutdown’s economic impact is becoming dire, affecting financial markets and federal workers as it extends further into November 2025. The prolonged shutdown threatens GDP, disrupts federal spending, and affects market stability, highlighting risks to the broader economy and causing fluctuations in safe-haven asset prices. Economic Consequences as Shutdown Hits Sixth Week As the US government shutdown continues into its sixth week, Treasury Secretary Janet Yellen highlighted worsening economic conditions. The prolonged shutdown has stalled federal operations and affected financial stability as federal workers remain unpaid and key programs halted. The US economy could face significant impacts from this extended shutdown, with the Congressional Budget Office estimating a reduction in Q4 2025 GDP by 1-2 percentage points. Markets responded to Yellen’s warning, seeing fluctuations in gold and the US dollar amid investor discomfort over fiscal uncertainties. Michael Feroli, Chief US Economist, J. P. Morgan noted, “Each week, a shutdown subtracts about 0. There could be a sentiment channel as well if the duration of the shutdown enters uncharted territory.” Janet Yellen, Secretary of the Treasury, US Department of the Treasury, “With these determinations, the Treasury Department will suspend additional investments . as expressly authorized by law.” Bitcoin Gains Spotlight Amid Financial Turmoil Did you know? The current US government shutdown has surpassed the previous record set in 2018-2019, now extending beyond 35 days. Similar historical disruptions led to significant market fluctuations, including notable movements in core macro-assets. Bitcoin’s recent data from CoinMarketCap shows a trading price of $103,061. 43. Bitcoin’s market cap stands at $2. 06 trillion, holding a 59. 37% market dominance. Trading.