Senate Reaches Deal to End Historic U.S. Government Shutdown as Economy Weakens:

The U.S. economy started the week with renewed optimism after the Senate approved a bipartisan deal Sunday night to end the longest government shutdown in American history. The agreement, reached after weeks of negotiations, could reopen federal operations through January 30, reversing more than 4,000 layoffs and restoring pay for thousands of workers. The deal combines three full-year spending bills with a temporary funding extension but stops short of renewing Affordable Care Act (ACA) subsidies set to expire at year’s end — a key Democratic demand. However, the Senate agreed to hold a separate vote on the issue in December. It also ensures continued funding for the Supplemental Nutrition Assistance Program (SNAP) through September 2026, protecting benefits for millions of families. The legislation now heads to the House of Representatives, where some Democrats have expressed resistance, arguing the package does not address all of their concerns. If approved, it will move to President Donald Trump for his signature. Following the Senate’s announcement, U.S. stock futures rose early Monday, reflecting investor optimism that the political stalemate may soon end. The shutdown has severely disrupted the economy — delaying critical government reports, halting paychecks for federal employees, grounding thousands of flights, and closing public facilities. The Bureau of Labor Statistics was unable to release the October jobs report, leaving analysts dependent on private data. According to ADP, U.S. employers added 42,000 jobs in October, slightly exceeding expectations, but other surveys pointed to slower hiring and uncertainty among businesses. Economists at Comerica Bank said much of the lost economic activity will likely rebound once the government reopens. Still, they warned that the weak October data could prompt the Federal Reserve to consider another interest rate cut in December, especially as signs of a slowdown continue to emerge. Attention now turns to new data from the National Federation of Independent Business (NFIB), which will gauge small business sentiment. The Atlanta Fed currently estimates third-quarter growth at 4%, but concerns remain over whether that strength carried into the fourth quarter. Meanwhile, technology stocks have faced steep declines amid fears that artificial intelligence (AI) investments may take longer to deliver results than anticipated. The shutdown’s broader impact has also been felt across the country: delays in SNAP benefits have driven more people to food banks, while Transportation Secretary Sean Duffy warned that air travel could be “reduced to a trickle” if the deadlock continues into the Thanksgiving travel season. With official data delayed, markets will closely watch upcoming speeches by Federal Reserve officials for clues about the central bank’s next move. The Fed cut rates by a quarter point in October to support growth, but policymakers remain divided. Some argue for more cuts to protect jobs, while others caution that inflation — now at 3%, above the Fed’s 2% target — could worsen if borrowing costs fall further. As the House prepares to vote, the outlook for the economy remains uncertain. If lawmakers act quickly, federal employees could return to work within days, easing pressure on businesses and consumers. But if political divisions persist, the economic costs of the shutdown could deepen, threatening to slow the fragile recovery just as the holiday season begins. The Senate’s breakthrough offers a glimmer of hope — but for millions of Americans waiting on paychecks, food assistance, or travel plans, that hope depends on swift action in the days ahead.

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