qinbafrank|Oct 31, 2025 01:54
Will the U.S. government shutdown end next week? A glimmer of hope for easing market liquidity. Check out The Hill’s report from last night: https://(x.com)/thehill/status/1983857936490242073?s=46&t=k6rimWsEbo2D2tXolYcM-A. It says that Senate Republicans and Democrats are working on finalizing a proposal to potentially end the 30-day-long government shutdown as early as next week. Some moderate Democrats have hinted behind the scenes that the party has successfully highlighted the issue of rising healthcare costs, and now it’s time to break the deadlock.
With the Affordable Care Act (ACA) marketplace opening for enrollment next month, higher healthcare costs are inevitable. Democratic senators believe the American public is already aware of the fact that Republicans have refused to extend healthcare subsidies. They are also concerned about the rapidly worsening consequences of the shutdown and are seeking a decent way to resolve the impasse before next week.
The expiration of Supplemental Nutrition Assistance Program (SNAP) benefits this Saturday and pressure from the American Federation of Government Employees (AFGE) have also made lawmakers, especially moderate Democrats, worry about the negative impact of the prolonged shutdown.
As we discussed this morning, if the government ends the shutdown and returns to normal operations, the Treasury’s TGA account will start spending again. The previously blocked TGA account will begin to release funds, which should significantly ease the current liquidity crunch.
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