Friday, November 14, 2025 -Though the 43‑day government shutdown has officially ended, economists warn its impact will continue to cast a shadow over the U.S. economy.
The crisis disrupted the flow of critical economic data — like job numbers and inflation — leaving both investors and the Federal Reserve “flying blind” as they try to gauge the health of the recovery.
That “data blackout” isn’t just a short-term headache. According to the IMF, weakening demand and a slowdown in hiring were already emerging before the shutdown — and missing data make it harder to know how deep those trends are.
Meanwhile, the Congressional Budget Office (CBO) estimates the shutdown shaved 1.5 percentage points off fourth-quarter GDP, and while some activity will bounce back in 2026, not all economic losses will be recovered.
Uncertainty remains a major risk. Without reliable data, the Fed may hesitate on future policy decisions — and businesses, unsure of where the economy really stands, may hold off on hiring or investment.
Historical precedent suggests shutdowns usually leave only modest long-term damage, but this one has exposed deeper vulnerabilities, especially in a fragile economic environment.
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