Catenaa, Tuesday, September 30, 2025- The Monday meeting in the Oval Office hosted by President Trump for Democrats doesn’t appear to have lessened the chances of a partial government shutdown.
“We have very large differences,” Senate Democratic Leader Chuck Schumer said after he left the Oval Office. Vice President JD Vance went further, saying in a separate appearance: “I think we’re headed to a shutdown.”
President Trump himself followed up Tuesday morning, saying a shutdown would be the Democrats’ fault and that he is looking to fire “a lot” of federal workers if a stoppage goes forward.
The lack of progress, as well as a drumbeat of releases from federal agencies about how they will furlough workers during a stoppage, is boosting the odds of the first government shutdown since 2019. It is set to begin on Wednesday at 12:01 a.m. ET without a last-minute deal.
Such a stalemate could produce unpredictable economic impacts, some of which could be felt quickly and others that could grow with each passing day.
Some effects are already in evidence in both currency and gold markets, but much of the market focus for now is on the government’s economic data, which will cease being published if a stoppage goes forward.
That comes as both investors and central bankers at the Federal Reserve are looking for all the information they can get about the slowing labor market and persistent inflation ahead of another Fed policy meeting at the end of October.
One new and unpredictable feature surrounding this potential shutdown is a Trump administration promise to consider mass firings if there is no deal.
are scarce so far on how deep any permanent cuts could go, even as Trump has repeatedly promised such moves are in the offing.
The country could also wrestle with a host of familiar effects experienced during previous shutdowns, from Transportation Security Administration (TSA) agents being forced to work without pay to national parks being closed to visitors.
US stocks were down on Tuesday, with the sentiment on an Imminent government shutdown.
