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The 2025 U.S. Government Shutdown: Legitimacy at Stake — The Dollar, the Fed, and Global Credit Under Strain

Now this is the ongoing us dollar crisis

Updated Oct 08, 20251 min readUS shutdowndebtcrisisdollarcrisis

Now this is the ongoing us dollar crisis

The 2025 U.S. Government Shutdown: Legitimacy at Stake — The Dollar, the Fed, and Global Credit Under Strain Introduction: A Shutdown That Means More Than Headlines When Washington enters a budget impasse, financial markets typically treat it as transient noise — a volatile few days, some “risk-off” swings, then a negotiated extension. But this time is different. On October 1, 2025 , at 12:01 a.m. EDT , the U.S. government officially shut down, with Congress failing to pass appropriations for the 2026 fiscal year. ( Bera.house.gov ) The lapse in funding triggered a cascade: ~800,000 federal employees furloughed, another ~700,000 working without pay, and widespread suspension of federal programs. ( Wikipedia ) But beyond the human and institutional disruption, this shutdown strains the pillars of U.S. monetary order : Federal Reserve legitimacy — as data releases stall, transparency erode


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