For the first time since the fall of 2013, the government shutdown this Saturday. After the Senate’s attempt to pass a short-term spending bill failed, the American government became frozen, just in time for President Trump’s one-year anniversary of being in office. If the government isn’t reopened by Congress soon, investors can potentially lose part of their trades and funds protection.
Typically, a shutdown occurs in the fall when Wall Street’s top regulator, the Securities and Exchange Commission, still has money from the previous year. Since this unexpected freeze has occurred in the winter, the agency will only be able to remain open for a limited number of days. This has the chance of cutting into the funds that provide a critical safety net for the financial market. The outlines of a potential deal are currently being worked out within the Senate, but the American public can only wait to see the effects of this decision, or lack thereof.
Additional Shutdown Impacts