
Capital Group experts assess the implications of the October 2025 U.S. government shutdown for investors.
Historically, shutdowns have been short-lived with minimal lasting effects on equities and bonds, though temporary volatility is common.
This episode is driven by disputes over health care subsidies and Medicaid cuts, with potential labor market implications if furloughs become permanent.
The greater risk lies in delayed economic data releases, complicating the Fed’s policy decisions at a time when markets anticipate a near-term rate cut.
Will this shutdown prove another brief interruption, or signal deeper fiscal and political fractures? Explore the full report for insights.