White House economic advisor Kevin Hassett said Monday that the ongoing U.S. government shutdown could be nearing its end, hinting that a resolution may come “sometime this week.” His comments suggest that negotiations between the Trump administration and Congressional Democrats have begun to show progress after weeks of stalemate.
In an interview with CNBC’s Squawk Box, Hassett warned that if talks stall, the administration could implement “stronger measures” to compel cooperation. The shutdown, now entering its third week, has disrupted vital government functions and delayed the release of key economic data, leaving financial markets in a state of uncertainty.
Data Blackout Raises Market Anxiety
Among the delayed reports are the Labor Department’s jobs data, the consumer price index (CPI), and the Federal Reserve’s upcoming rate decision, all crucial for gauging inflation, employment, and monetary direction. Economists say the data blackout has made it harder to measure economic health, complicating trading decisions and increasing volatility.
Ripple Effects Hit the Crypto Market
The shutdown’s impact has extended beyond traditional markets. In the crypto sector, reduced liquidity and weaker institutional inflows have led to lower investor confidence. Analysts note that with regulatory reviews and ETF filings also delayed, crypto market momentum has slowed — a sharp contrast to the optimism seen earlier in the quarter.
If negotiations succeed this week, a reopening of federal operations could provide much-needed clarity for both Wall Street and digital asset markets, easing concerns that have been building through the shutdown’s third week.