The Historic Government Shutdown Could Have A Negative Lasting Impact On America's Currency System

The six-week government shutdown, which concluded late Wednesday, poses an additional strain on an economy already grappling with numerous challenges. Approximately 1.25 million federal employees have not received wages since October 1, resulting in significant reductions in consumer spending. Nearly 10,000 flight cancellations occurred during this period, creating ongoing disruptions despite air traffic controllers returning to their duties. Furthermore, government contract awards have slowed, impacting food aid recipients who experienced interruptions in benefits.Although the economic activity lost will likely be recouped when the government resumes, some canceled flights and restaurant reservations may not be replaced, leading to enduring impacts. The halt in essential economic data on employment and inflation may influence Federal Reserve decisions at their December meeting. Heather Long, Chief Economist at Navy Federal Credit Union, noted that the shutdown has been detrimental to the economy, with the Congressional Budget Office projecting a growth decrease of about 1.5 percentage points for Q4.