The US federal government has officially shut down after lawmakers failed to reach a deal on temporary funding.
The deadlock between Democrats and Republicans in the Senate prevented passage of a stopgap measure, marking the first government shutdown in nearly seven years.
President Donald Trump’s administration has warned of possible mass layoffs of federal workers if the impasse continues, reports dw.com
The shutdown creates immediate uncertainty for millions of government employees and contractors, as well as for the wider US economy.
Many federal services could come to a halt, while delays in routine operations are expected to affect everything from regulatory oversight to public services. Economists warn that prolonged closures could weigh on consumer confidence and slow economic momentum.
Financial markets reacted swiftly to the news. Gold prices surged to a record high of $3,875.53 per ounce, as investors sought safe-haven assets amid the political standoff.
Wall Street futures slipped, with the Dow, S&P 500, and Nasdaq all lower ahead of trading, while optimism over a potential Federal Reserve interest rate cut was overshadowed by fears of disrupted economic data releases.
Global markets , according to news agencies, showed a mixed response. Most Asian equities closed higher despite the shutdown, with gains recorded in Singapore, Seoul, Mumbai, and Manila.
However, Tokyo and Sydney posted declines as investors weighed the potential risks of prolonged political gridlock in Washington. Analysts note that while past shutdowns have not caused lasting damage to equities, early volatility is common, and confidence may weaken if the impasse drags on.
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