The U.S. federal government could face a shutdown on October 1, if politicians fail to reach a budget agreement. This impending situation could cause temporary economic damage due to reduced consumer confidence and interruptions in defense and healthcare spending. However, the impact is expected to be short-lived, as previous shutdowns have typically lasted only a few days and most employees have received back pay.
Stocks ended the week lower after selling off amid the prospect of prolonged high interest rates.
The U.S. Federal Reserve is contemplating additional interest rate hikes this year in response to persistent inflation, according to Governor Michelle Bowman's remarks on Friday. Despite significant strides in curbing inflation, Bowman emphasized the need for continued efforts during a speech to banking professionals in Colorado.