Big Take What a Looming Shutdown Means for Markets
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Sep 29, 2025 Megan Scully, Bloomberg Congress editor, offers insights on the looming U.S. government shutdown and its political and economic repercussions. She discusses how current negotiations center around ACA subsidies and the potential chaos of shifting from furloughs to mass layoffs. Scully analyzes the stakes for both parties, the historical context of shutdowns, and the unlikely short-term market disruptions. Her predictions on job losses emphasize the long-term risks for the economy if the impasse remains unresolved.
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Blame Is The Central Political Play
- Political players are jockeying to avoid blame for a potential shutdown.
- Each side is framing responsibility to gain leverage and public sympathy.
Health Subsidies Are Democrats' Leverage
- Democrats center their leverage on Affordable Care Act subsidies due to broad voter impact.
- Republicans push for a clean short-term funding bill to delay negotiating the subsidies.
Potential Mass Firings Raise Stakes
- This shutdown could be more consequential than past ones because of proposed mass firings.
- Layoffs would remove back pay protections and produce longer-term economic harm.
