Closing Bell Closing Bell Overtime: Markets Cool on China as Washington Faces Shutdown 10/27/25
Oct 27, 2025
Mick Mulvaney, former White House chief of staff, shares insights on the potential fallout from the ongoing government shutdown and its economic risks. He discusses how a framework agreement with China might affect trade relations and highlights opportunities with other regional trade partners. Mulvaney also elaborates on the implications of federal job cuts and how the OMB could reshape federal staffing during this period. The conversation touches on market reactions amid easing U.S.-China tensions and preparations for a critical week of tech earnings.
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Framework, Not A Final China Deal
- A full U.S.–China comprehensive trade deal is unlikely; expect mostly a "framework" outcome from Trump and Xi's meeting.
- Markets should price in partial progress rather than a return to pre-tension relations.
Monitor Airports As Shutdown Pressure Point
- Watch airport operations and air traffic controller pay during the shutdown as early signs that lawmakers will return to negotiations.
- If air travel disruption rises, expect increased political pressure to end the shutdown.
OMB Gains Authority During Shutdown
- The OMB gains operational authority during a shutdown, enabling longer-term staffing changes.
- Expect potential permanent federal workforce reductions if the shutdown persists.