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2025-11-03 22:41:27
[Goldman Sachs: This US Government Shutdown "Is Likely to Have the Biggest Economic Impact in History"] Goldman Sachs economist Alec Phillips wrote in a report to clients that the current government shutdown "is likely to have the biggest economic impact in history." He noted that the funding suspension appears poised to exceed the 35-day partial shutdown of 2018-19 and will have a wider impact. If the shutdown lasts six weeks—around November 12—it could reduce the annualized quarter-on-quarter growth rate by 1.15 percentage points in the fourth quarter, with a recovery expected in the first quarter of 2026. He pointed out that as the shutdown's effects spread from air traffic control towers to the federal food stamp program, Congress is facing increasing pressure to break the deadlock.
