U.S. federal shutdown deepens strain on US economy

The U.S. federal government’s partial shutdown has entered its third week, edging toward the longest on record and threatening to derail a fragile economic recovery. Key labour and consumer-data releases have been delayed, complicating policy-maker decisions at the Federal Reserve and increasing uncertainty for markets. Economists warn of GDP downward pressure and mounting risks to employment, while investor confidence is wobbling amid limited visibility on macro-data and fiscal policy. The backdrop heightens the risk that rate-cut expectations may need re-evaluation.