When Will the Shutdown Affect Markets?

Michael Zezas, Global Head of Fixed Income Research and Public Policy Strategy, discusses the ongoing U.S. government shutdown, noting the market's initial calm despite the one-week mark. He outlines three checkpoints that could shake investor confidence if the shutdown continues: the first missed paycheck for furloughed federal workers, potential permanent staff cuts by the administration, and real disruptions to economic activity such as air traffic delays. Zezas concludes that while markets may remain calm for now, the longer the shutdown persists, the more likely these pressure points will lead investors to re-evaluate their optimism.