As the government shutdown, now colloquially known as the ‘Trump Shutdown’, continues into its nineteenth day, American traders and stock market investors are warning about the President plunging the economy into ‘chaos’ and sending stock markets falling dramatically.
Top Democrats Nancy Pelosi and Chuck Schumer met with the President and Vice President before Christmas to discuss how to keep the stock markets running whilst the government was shut down, but the President made it clear he was not going to change his position. A similar meeting more recently lasted just 14 minutes with neither side willing to budge.
There have been growing warning signs that the stock market could be in for a major downturn in the coming days and weeks: well-performing investors have noticed a significant decrease in share price, for one.
On a judicial level, the Federal Reserve’s ‘plunge protection team’ is to discuss how to salvage the tanking market, something that hasn’t been done since the lead up to the 1987 Recession. This crisis call has done little to quell the markets and, with more uncertainty surrounding the President’s threats to fire more of his own staff, investors have waning confidence in continued investments.
Another casualty has been the opening few days of the American stock market. Officials on Wall Street, investors, and policymakers are unsure of market trends and other key data.