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Mongolia’s Leap into the Future: The Chinggis Khaan Sovereign Wealth Fund and the Data Center Revolution

Mongolia Joins the Global Data Center Boom with Chinggis Khaan Sovereign Wealth Fund

Mongolia is set to join a fast-growing data center market. The country has rich natural resources and a kind climate that suit new digital projects. This step comes from a plan that uses the Chinggis Khaan Sovereign Wealth Fund. The fund uses money from Mongolia’s mineral wealth to boost social well-being, build roads, and work on green energy projects.

A New Era Powered by Data and Renewables

The law started the fund in April 2024. It now holds about $1.4 billion. The fund works to change Mongolia’s economy by investing in the rising need for data centers for cloud computing and AI. Global AI tasks grow, and data centers that use less power are needed.

Temuulen Bayaraa, head of the fund, spoke at the Milken Institute Asia Summit in Singapore. She said, "We have vast land and a good climate for data centers." The fund plans special economic zones like Hunnu City. Hunnu City will be a smart urban area built for data center work and related tasks.

Aligning Investments with Green Energy Initiatives

The fund also directs money to build large renewable energy grids. This plan helps increase the flow of green energy outside Mongolia. The country lies between Russia and China and builds strong ties with both. These links help in supplying green power to nearby markets.

Mongolia now plans to grow green power in its electricity mix to 30% by 2030. This is a jump from 18.3% in 2023. The fund puts support into wind and solar projects that power data centers and meet world plans for cleaner energy.

Responding to Global Trends and Domestic Needs

This fund follows a seen trend in Asia. Countries like Japan, Singapore, and Malaysia invest more in data centers as AI and cloud projects grow. Goldman Sachs sees that energy use by data centers will go up by 50% by 2027 and possibly by 165% by 2030. Mongolia aims to cut risk from mineral price swings. The country’s minerals are a key funding source. Erdenes Mongol, a state-owned company with stakes in mining, manages the fund to share mining money in a fair way.

Rebuilding Trust and Driving Inclusive Growth

Many Mongolians have felt that mineral wealth was not shared well. In 2025, widespread protests led to the exit of Prime Minister Oyun-Erdene Luvsannamsrai. Bayaraa said the fund must rebuild trust by using mineral money for the people.

She stated, "The fund builds trust by managing and sharing wealth in a separate way." It will pay for schools, health care, housing, and job training. This plan should help grow a strong middle class and support fair progress.

Citizens can watch the fund’s money go through an easy-to-use app. This step helps everyone see where funds go.

Attracting Global Expertise with a Local Impact

The fund also plans to hire Mongolian experts who have worked abroad in banking, investing, and wealth management. These skilled people will help run the country’s funds. Bayaraa noted, "Mongolia has long drawn foreign money into the country. Now, for the first time, we invest to join a global scene."

As Mongolia moves into the data center space backed by green energy and a strong fund, the nation looks to build a diverse, clear, and fair economic future.

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The Missing Jobs Report: Insights on the Economy Amid Government Shutdown

Government Shutdown Halts Key Jobs Report: What September’s Labor Market Would Have Revealed

On Friday, October 2, 2025, the expected Bureau of Labor Statistics report did not come out. The government shutdown in Washington, D.C. stopped the report. Investors, policymakers, and economists did not get new data on the U.S. labor market. This gap made many ask about how September’s employment behaved. Other data and market clues show a labor market that is steady yet mixed as it adjusts after the pandemic.

What the Missing Jobs Report Would Have Said

Before the shutdown, Dow Jones consensus forecasts set an increase of roughly 51,000 jobs. They also set the unemployment rate to hold at 4.3%. These numbers spoke of modest labor market growth. Chicago Federal Reserve President Austan Goolsbee said the labor market stayed “pretty stable” during a CNBC talk after the shutdown. To fill the gap, the Chicago Fed built a simple dashboard. It tracks hiring and layoff rates and gives a new view of employment trends after heavy criticism of the old data.

Indicators Point to An Anemic but Steady Labor Market

Even without the government number, private and state data give clues:

  • Job postings on sites like Indeed dropped by about 8.9% compared to last year. This drop shows softer worker demand.
  • ADP’s private payroll report showed 32,000 fewer jobs in September and 3,000 fewer in August. This drop marks a slower pace in hiring.
  • State data on initial jobless claims suggest about 224,000 claims nationwide. The number is a bit high, but it stays close to long-term trends.

Employers seem to be careful with layoffs. They recall the hard work needed to rehire during the COVID-19 times. The labor market looks like this:

  • Job growth stayed small,
  • Fewer positions were open,
  • New workers, especially young ones and fresh graduates, search longer for jobs.

Uneven Recovery Across Sectors

Not every sector gained equally:

  • Healthcare led most job growth and job postings. The need for nurses and caregivers stayed high.
  • In contrast, work in software development did not grow as much, and the job view splits.
  • Other areas like business services and leisure show mixed signs.

Indeed’s senior economist Cory Stahle said that the split shows work chances focus on certain fields.

Broader Economic Signals and Small Business Outlook

Other signs come from consumer spending. For example:

  • Bank of America noted a 2.2% increase in credit and debit card use in late September. This uptick hints at strong consumer buying, even as jobs grow slowly.
  • Fiserv’s small business index recorded a 2.3% rise in sales and transactions for the year, a small but steady gain.

At the same time, small businesses feel mixed moods. The National Federation of Independent Business chief economist Bill Dunkelberg saw a big gap between available jobs and filled positions. Many job spots stayed open despite plans to hire more.

The Bottom Line

The shutdown stopped the release of the key report. Yet, many data points show that the U.S. job scene in September 2025 appears as follows:

  • It stays steady but moves slowly.
  • Some sectors, like healthcare, do well while others lag.
  • New workers face challenges in getting started.
  • Employers work with caution in hiring new staff.

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Navigating Adversity: The Struggles of Recent College Grads in a Tough Job Market

The Job Market Slowdown Is Hitting Recent College Graduates Hard

Today young college graduates face a slow job market. A degree does not open a clear path to work. The U.S. market now shows real strains that shape early careers.

A Tough Landscape for New Graduates

Christina Salvadore, 23, holds a degree from Georgetown University. She has done several internships. She planned to start a job in New York City in the fashion or beauty field. Yet, she now finds it hard to land a full-time job. She sent many applications and went to several network meetings since last spring.

"I spend my days on LinkedIn at my parents’ house," Christina said to a news channel. With few full-time roles, she picks part-time work to pay bills. This is not the bold start many had once seen.

Her story joins reports of more young graduates without work. New federal figures show that new college grads face high jobless numbers and problems getting white-collar work. This change also shifts how first-time job seekers find work.

Statistical Evidence of a Decline

Recent federal data now shows that the rate for "new entrants" in full-time work is at its top for nine years in 2025. The share of jobless new grads is at its highest in decades. A leading labor research group, Burning Glass Institute, now calls the U.S. a "no country for young grads." The team led by chief economist Gad Levanon released a report this summer. He points out that a bachelor’s degree no longer brings the white-collar career one expects. Levanon notes that, for the first time in modern times, a four-year degree does not keep its promise for many young people.

Young people with bachelor’s degrees have usually had lower jobless rates than others with only a high school diploma. Now, the difference is very small—its narrowest gap since the early 2000s.

The Emotional Toll and Social Media Reflections

The search for full-time work now affects the minds of new grads. Many feel stress and worry. On social media sites like TikTok, young adults share their job hunt stories. These posts speak about slow progress, unanswered applications, and other problems. Many note that entry jobs now ask for years of experience. Some also say that they have had to move back with their parents.

The feelings run deep. Many say they feel like they are “crashing out” as doubt fills their minds. Michael Hartman, a Boston College graduate with an economics degree, has looked for work for nearly a year without success. He even asked advice from a psychic, showing how lost some feel.

Economic Policymakers Take Notice

Top economic leaders now see this slow hiring landscape. Jerome Powell, the Federal Reserve Chair, has noted that young workers now face a tougher search for jobs. He points to a time when few people are fired and few are hired. Data from August shows that hiring has slowed and fewer people change jobs. A 25% jump in those unemployed for 27 weeks or more warns of a soft labor market. Rising college enrollments and steady demand for degree holders add to the gap between jobs and workers.

Emerging Challenges: AI and Automation

New computer technology now brings more change. The rise of artificial intelligence puts some entry-level roles at risk. A study from Stanford in August found that jobs for those aged 22-25 have fallen by 13% since 2022. Leaders at large firms like Walmart and Accenture now say that AI will alter work requirements very much. Many young workers now worry more about losing their jobs. Surveys show that 18- to 34-year-olds feel the risk of job loss is as high as it was in past downturns.

Varied Impact Across Sectors

All parts of work do not feel the same pain. Some parts still show open entry roles. For example:

  • Software development roles now run at about 66% of their level before the pandemic.
  • Nursing job listings have grown by 16%.

Yet, many fields now lose more entry roles than they add. In technology, the drop is strong—over 50% fewer entry hires at large firms since 2019. While some areas show hope, the close job market makes many worry.

The Changing Outlook for College Graduates

Soon-to-be graduates like Emma Zatkulak, a communications major at Boise State University, now start looking for work much sooner than planned. Emma works two jobs while studying. She attends interviews for sales and insurance roles—jobs she did not consider before this slow market.

"This has been very stressful," Emma says. "I have not felt calm in a few months."

For many young people, the promise of a degree as a sure path to steady work now seems dim. This shared struggle may change how they view higher education and career plans for many years.

Conclusion

The slow pace of hiring changes early career views for new college graduates across the United States. Some fields still show hope, while shifts in the market, new technology, and less available work force many young people today. Policymakers, educators, and industries all now study these trends. Young workers keep moving forward, tied closely to each new connection and effort.

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Labor Market Crisis: Hiring Hits Record Low as Economists Navigate Shutdown Data Blackout

Hiring Hits Lowest Level Since 2009 Amid Government Shutdown; Economists Turn to Alternative Data

October 2, 2025 — New reports show hiring at its lowest point since 2009. The government shutdown delays key work reports. That delay makes experts use other data to check job trends in the country.

Labor Market Trends Amid Data Gap

Two reports came out on Thursday. One report comes from the Chicago Federal Reserve. The other comes from the outplacement firm Challenger, Gray & Christmas. Both reports help us see work trends when the usual government reports are not available.

• The Chicago Fed’s dashboard shows that the jobless rate stayed near 4.34% in September. This rate is almost 4.4%, the highest since October 2021. • The same report notes that layoffs stayed near 2.1%. However, hiring dropped to 45.2% in September, down 0.4 percentage points from August. This drop shows fewer new jobs start.

Challenger, Gray & Christmas Report: Fewer Hires, More Job Cuts

The firm also notes a 37% drop in announced layoffs in September. This figure marks a 26% decrease compared with one year earlier. Yet, the total planned furloughs are at their top since 2020. The first three quarters show 946,426 announced job cuts. That total is 24% higher than in all of 2024. In contrast, new hires in 2025 reached only 204,939. That figure marks a 58% drop from the same period a year ago. It is the lowest level seen since 2009. The 2009 period had many problems after a financial crisis.

Andy Challenger, senior vice president and labor expert at the firm, said many job cuts happened before. He noted that past times with many job cuts occurred during recessions or in 2005 and 2006 when automations took jobs in manufacturing and technology.

Effects of the Government Shutdown on Job Data

Under normal rules, the Labor Department would release weekly jobless claims on Thursday and the monthly nonfarm payrolls report on Friday. The shutdown, now in its second day, stops these reports for now.

Experts and Federal Reserve leaders must use new data from groups like the Chicago Fed and private firms to see job trends. These new sources help fill the gap left by missing government reports.

Looking Ahead

The delay in the usual job statistics makes it hard to track the economy at a key time. As new data arrive from other groups, many will watch to see if the drop in hiring means long-term problems or a short pause.

For more updates on market and economic conditions, visit CNBC’s Economy section.

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Federal Reserve’s Response to Government Shutdown: The Likelihood of Interest Rate Cuts

Government Shutdown Increases Odds of Federal Reserve Rate Cuts

October 1, 2025 — Washington, D.C.

A U.S. government shutdown now pushes the Fed toward lowering key rates later this month. Lawmakers still clash over the federal budget. Experts and market watchers see Fed Chair Jerome Powell and the committee prefer a cautious shift in policy as economic risks grow.

Shutdown’s Impact on Fed Policy Decisions

The standoff in Washington started at midnight Thursday. It may worsen economic gaps by slowing down government data and stirring labor market issues. Such events now support a rate cut at the upcoming Fed meeting on October 28–29. Krishna Guha, who leads global policy at Evercore ISI, said in a recent talk that the shutdown tips the odds further in favor of a rate cut. Guha added that the damage from the shutdown and weak labor data now weigh more than inflation worry for policy makers.

Market Pricing Signals Confirmation

The CME Group’s FedWatch tool now shows a 100% probability of an interest rate cut in October and an 88% chance of another cut in December. These numbers have jumped since the shutdown began. Market views now lean toward a softer monetary stance soon.

Economists at Bank of America note that government shutdowns often end before Fed meetings. This timing lets the Fed view complete economic data. Now, with the standoff still active, key gaps appear in data.

• Without a fresh report on September jobs, Chair Powell may see a “risk management” move as needed.
• The Fed may wish to cut rates to ease risks that grow with each day of shutdown stress.

The Labor Market at Risk

The shutdown now hits the labor market hard. The Congressional Budget Office says each extra day of closure forces about 750,000 federal employees into furlough at a cost of $400 million in pay each day.

Past shutdowns meant that furloughed workers later got back pay. But hints from President Trump may mean some staff will face lasting layoffs. This chance now troubles many over the labor market.

Private employers already show strain. ADP counted a drop of 32,000 jobs in September. Data on federal work by the Bureau of Labor Statistics may also show delays if the shutdown goes on. Such delays leave the Fed with less clear signs of economic trends.

Fed’s Evolving Outlook

At the September meeting, a small count of Fed officials backed two rate cuts for this year. Some worry that tariffs may push up prices for a short time. Still, most see inflation head back toward the 2% mark in coming years.

Chair Powell’s words stay practical. He says plans depend on fresh data. The shutdown, though, adds real unknowns. Market watchers now think the Fed may move to ease rules sooner.

Summary of Key Takeaways:

  • The government shutdown now makes a Fed rate cut in October more likely.
  • Markets show a 100% chance of an October cut and an 88% chance of a December cut.
  • Missing job data and weak labor trends press the Fed to act ahead of time.
  • Continuing furloughs may bring lasting harm to the labor market and steer Fed policy.
  • Fed leaders stay cautious but lean toward easing amid rising economic risks.

As Washington deals with its budget fight, the Fed now must balance fighting price rises and guarding the economy from shutdown impacts and a soft labor scene.

Stay tuned to CNBC for ongoing coverage of economic changes and Fed policy moves.

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Job Losses Mount: ADP Reports Sharp Decline in Private Payrolls Amid Government Shutdown

Private Payrolls Fall by 32,000 in September Amid U.S. Government Shutdown and Data Blackout

September data shows labor market signs that point to rising economic risk

In the United States, private payrolls lost 32,000 jobs in September. ADP released this report on October 1, 2025. The drop is the worst since March 2023. Economists had predicted a gain of 45,000 jobs. This result marks a shift in labor market behavior.

Context: Government Shutdown Delays Key Labor Data

A funding standoff in Washington, D.C. caused the first federal shutdown since 2018-2019. This shutdown stops the Bureau of Labor Statistics (BLS) from releasing its data as scheduled. In particular:

  • The BLS nonfarm payrolls report for September is delayed.
  • The weekly jobless claims figures are on hold.

Policy makers and market watchers now face a gap. They check these figures to assess the economy and set policy.

ADP Report Gains More Weight Ahead of Federal Reserve Meeting

Without the BLS reports, the ADP numbers carry extra weight before the Federal Reserve meeting on October 28–29, 2025. Market experts expect the Fed to cut its main borrowing rate by 0.25 point as signs of a slowing economy appear.

ADP’s chief economist, Nela Richardson, said that a strong second quarter did not stop a slowdown in hiring. US employers now show more caution when making new hires.

Sector and Company Size: A Closer Look at Job Changes

Job changes spread across several industries. Some areas show gains while others lose jobs:

  • Job gains: Education and health services added 33,000 jobs amid school reopenings and continuing trends in health care.
  • Job losses:
    • Leisure and hospitality lost 19,000 jobs as the vacation season wound down.
    • Other services dropped by 16,000 jobs.
    • Professional and business services shed 13,000 jobs.
    • Trade, transportation, and utilities lost 7,000 jobs.
    • Construction saw a drop of 5,000 jobs.

Service providers lost 28,000 jobs in total. In contrast, goods-producing sectors lost 3,000 jobs.

Business size also shows different trends:

  • Small businesses with fewer than 50 employees cut 40,000 jobs.
  • Large companies with 500 or more employees added 33,000 jobs.

Wage Growth Holds Steady

Despite fewer new hires, wage growth did not slow. Average wages increased by 4.5% year-over-year in September, much like in August. For workers who switched jobs, wage gains reached 6.6%, down slightly from the previous month.

Revised August Figures Indicate More Stress

ADP also changed its August data. The gain of 54,000 jobs was adjusted to a loss of 3,000 jobs. This move follows updated BLS figures. It adds to the picture of slowing hiring.

Economic Growth and Future Outlook

The U.S. economy grew 3.8% in the second quarter of 2025. The forecast now predicts a 3.9% gain in the third quarter, according to the Atlanta Fed’s GDPNow tracker. Still, some worry about the labor market. The unemployment rate stays low at 4.3%.

Boston Fed President Susan Collins warned that if job demand falls faster than available workers, unemployment may rise in a short time.

Looking Ahead

With federal data on hold, private reports like ADP’s serve as key indicators of economic health. The slowdown in hiring, occurring with a government shutdown and rising uncertainty, will likely affect the Fed’s next moves.

Stay informed with CNBC for the latest updates on market-moving economic data and policy decisions.

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Consumer Confidence Dips as Wall Street Prepares for Data Blackout Amid Government Shutdown

Consumer Confidence Drops as Wall Street Prepares for Data Freeze Amid a Government Shutdown

Published September 30, 2025 – Updated Minutes Ago

Consumer confidence falls in September. People show less trust in the economy as Wall Street gets ready for a possible shutdown and a pause in key data releases.

The Conference Board released its report on Tuesday morning. The report shows that the consumer confidence index fell to 94.2, which is 3.6 points lower than August. This reading did not meet the Dow Jones estimate of 96.0 and is the lowest level since April this year.

Impact of the Federal Government Shutdown

Consumer trust falls while nonessential government work stops at midnight. Key economic data stops as well. Wall Street takes note and moves with caution in the market.

Signs of Continued Economic Caution

The Conference Board report shows weak economic signs beyond the overall index:

  • The "present situation" index falls to its lowest level in a year. It shows what people think about current business life.
  • Views on job availability drop for the ninth month in a row. This drop hits a new low in several years.

Stephanie Guichard, a senior economist at the Conference Board, explained:
"Consumers judged business conditions much less positively than in recent months, and their view on job availability fell for the ninth straight month to a new multiyear low."

Labor Market Shows Signs of Weakness

The labor market has been weak in 2025. Job availability got a small lift in August compared to July. The U.S. Bureau of Labor Statistics (BLS) said job openings reached 7.23 million in August. This is 19,000 more than in July. Yet, this figure is 5.5% lower—422,000 fewer—than the same period last year.

The BLS’s Job Openings and Labor Turnover Survey (JOLTS) is watched closely by Federal Reserve officials. The data shows signs of cooling:

  • Hiring slows down.
  • Total job separations drop.
  • Quits fall by 75,000. This drop shows that many workers feel less sure about finding new jobs after leaving current work.

Market and Economic Outlook

The pause in government data will make it harder for everyone to see the true state of the economy in the coming weeks. Wall Street takes a careful stance. There is worry that the shutdown will stop economic momentum and delay needed budget choices. Meanwhile, consumer sentiment stays low as job worries and economic risks persist in both local and global settings.

This is a breaking news story. Please refresh for updates.

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Unprecedented Impacts: Why This Government Shutdown Could Shake the Economic Landscape

Government Shutdowns Usually Have Little Economic Impact — But This Time Could Be Different

Published September 29, 2025

By Jeff Cox, CNBC

In the United States, government shutdowns spark deep political fights. They hurt the economy and markets very little. Experts now see the 2025 shutdown in a new light because its facts point to long-term effects.

Why This Shutdown Could Be Different

A major sign is President Donald Trump’s plan to let some furloughed workers stay out of work for good. In past shutdowns, workers returned when the deadlock ended.

Michael McLean, a senior public policy analyst at Barclays, spoke in a client call. He said that if Trump acts on this plan, the economy could fall into new risks. "This plan breaks past practice, and it may bring new risks to a shutdown’s mild effect," McLean said.

Historical Context of Shutdowns’ Impact

Shutdowns in the past have harmed the economy little. This is mainly because federal workers get paid once the government restarts. Market drops have not lasted long and mostly recover fast. Some experts put the GDP loss at about 0.1 percentage point each week of a shutdown. The longest recent shutdown lasted 35 days between late 2018 and early 2019. That period was too short to affect the U.S. economy, which is worth $30 trillion.

Labor Market Vulnerabilities

The job market seems weak, especially in the Washington, D.C. area, which has many federal workers. Early in 2025, layoffs tied to changes in government jobs—supported by Elon Musk’s Department of Government Efficiency advisory board—hurt work stability in the area.

Now shutting down non-essential jobs and possibly making some furloughs final could add more strain. This chance makes experts like Nomura’s David Seif worried. He said that the impact on the October nonfarm payroll report, to be released in November, may hit harder than in past shutdowns.

Disruptions to Key Economic Data

A long shutdown may slow or lower the quality of important economic reports. The Department of Labor said it will stop most work, which stops the Bureau of Labor Statistics from sending out its reports. The monthly jobs report is one of them.

The consumer price index report may be late. That delay can change Social Security payments for many retirees. The Federal Reserve uses BLS reports to set interest rates and money plans. Without quick government data, the Fed will have to depend on private data. This mix of sources makes its job much tougher.

Market and Economic Outlook

Some experts still see a chance for a good outcome. Mark Cabana, head of rates strategy at Bank of America, said, "Even if the shutdown happens, we see little harm in the economy." He noted that a shutdown stops the flow of government reports and that the Fed would then use private data for its plans.

Elizabeth Renter, a senior economist at NerdWallet, said that the overall hurt to the economy may be “relatively mild.” She pointed out that the immediate loss of pay hits furloughed workers and contractors very hard.

Summary of Potential Impacts

  • Permanent Furloughs: President Trump’s idea to stop recalling some workers breaks old habits. This step risks long-term job problems.
  • Labor Market Risk: The weak job market, especially in areas with many federal employees, could get even harder.
  • Economic Data Delays: A shutdown may push back key reports (jobs, CPI). This change could affect Social Security and the Fed’s plans.
  • Market Response: Markets might drop at first but have shown quick recoveries in the past.
  • Household Strain: Furloughed workers and contractors face immediate money worries.

As the shutdown goes on, officials, experts, and investors will watch the changes with care. Many hope that a quick end comes with little hurt. But this shutdown may mark a stronger economic burden than those before it.

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Image credit: Anna Moneymaker | Getty Images
Location: U.S. Capitol, Washington, D.C., September 29, 2025

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Navigating Uncertainty: How a Government Shutdown Could Impact U.S. Markets and Credit Ratings

Potential Market Risks Emerge as U.S. Government Shutdown Gains Attention on Trading Floors

September 29, 2025 — Past shutdowns saw calm markets. New signals hint that this shutdown may bring more risk. Traders and economists share their worry.

Background and Current Situation

The U.S. nears a shutdown deadline on Wednesday. Traders talk about a possible drop in the economy. On Monday, the Labor Department made plans that expect little news if government work stops. This step shows the government stays ready as doubt grows. President Donald Trump meets with top Congressional leaders to try to reach an agreement before the deadline. He warns that many federal workers may lose their jobs if the shutdown goes ahead. This warning sets the event apart from past shutdowns.

Credit Rating Concerns: A Growing Risk

Market talk now points to a shutdown that may harm the U.S. credit rating. In May 2025, Moody’s lowered the rating from Aaa to Aa1. It argued that political issues may hurt the economy. Extra cuts may come if:

  • Policy strength drops.
  • U.S. institutions lose power.
  • The economy shows less strength.
  • Global markets shift away from the U.S. dollar.

JPMorgan’s traders note a risk tied to the shutdown. They see that more cuts can harm U.S. Treasury bonds. A lower credit score raises yields, makes loans more costly for companies, and cuts the value of future earnings. This change may put pressure on the stock market.

Market Reactions and Analyst Views

Bond traders and economists keep a careful eye on the news. Chris Rupkey from FWDBONDS said a further downgrade feels like a small detail. He noted that Treasury bonds have stayed strong during past cuts. Rupkey trusts that Treasury Secretary Scott Bessent can act fast if the risk grows. Joe Brusuelas from RSM doubts a new downgrade will happen. However, he warns that a long shutdown might slow hiring and investments. In his words, "Market participants have grown used to Washington’s ongoing fiscal errors."

Historical Context

Previous U.S. shutdowns did not shake the markets much. Today, however, a mix of political splits and economic doubts makes this shutdown stand out. Investors now watch closely for signs that government troubles might shake faith in U.S. money plans.

What’s Next?

Time runs short as leaders try to reach a deal before the deadline. The next few days will show if the shutdown triggers more than just basic work interruptions. It could affect credit scores, Treasury yields, and overall market calm.

Key points to watch in the coming days:

  • Progress in talks between President Trump and Congress.
  • Official government updates on plans and economic news.
  • Changes in U.S. Treasury bond yields and stock prices.
  • Statements or actions by rating groups and Treasury workers on credit issues.

Investors and market participants should track news closely as fiscal and political events change.

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Uncertainty Over UK Tax Hikes: Chancellor Reeves Teases Economic Renewal Amid Fiscal Challenges

UK Finance Minister Keeps Public Guessing Over Potential Tax Hikes Ahead of Autumn Budget

Liverpool, UK — The United Kingdom’s finance minister, Chancellor Rachel Reeves, spoke at the Labour Party conference in Liverpool on Monday, September 29, 2025. Reeves, who stands as the key figure for state finances, kept her words short and clear. Her talk did not define any firm plans about tax changes before the Treasury’s Autumn Budget on November 26. Here, every word ties together as investors, economists, and the public wait for signals amid tight money matters.

Championing Economic Renewal with a Focus on Youth Employment

In her talk, Reeves placed Britain’s work growth and youth job support side by side. She tied each goal to practical steps. One step, named the Youth Guarantee, links young people with strong chances to work:

  • A link gives each youth a clear spot in college or an apprenticeship to learn a trade.
  • A tie pairs one-to-one guidance with job hunting.
  • A bond offers a paid work position for those out of work 18 months, giving them steady work and real skills.

Reeves said, “Every young person will be guaranteed either a place in a college, for those who want to continue their studies or an apprenticeship, to help them learn a trade vital to our plans to rebuild the country.” Her words build a connection between learning and work, setting a base to form a strong team that can drive growth.

Uncertainty Looms Over the Autumn Budget

Even as she built hope for youth jobs, Reeves stayed brief on tax changes or cuts in spending. Her silence links her decisions to strict budget limits. Experts tie the need for firm fiscal moves to the threat of a funding gap:

  • Analysts join in noting the Treasury might face a shortfall of up to £50 billion ($67.16 billion) in public funds.
  • This gap links to higher spending on welfare, lower tax collections from slow growth, and the climb of borrowing costs.
  • Past spending plans and shifts in welfare tie even tighter the strain on the budget.

Her rules for balance and debt form a tight chain. These rules work with a promise from Labour not to add taxes on workers, which now join a challenging economic scene.

Political and Market Pressures on Chancellor Reeves

Reeves, who once put in a £40 billion tax rise in her last Autumn Budget by aiming at business and employer funds, now feels pressure from party activists and market watchers. Since her win in July 2024, her party has tied itself to the idea of keeping taxes on workers low, yet tough economic facts now pull her in another way.

Financial experts now draw links between fiscal needs and rising taxes. Nigel Green, CEO of the deVere Group, noted, “The Chancellor is boxed in by her own numbers and political reality. Markets will demand discipline, but her party will demand action. The path of least resistance is higher taxation.” Rising gilt yields and a wide gap tie the need to pull resources from more spots.

Her emotions in parliament, seen when she stood weakened by pressure, add to the links of worry. Rumors in the market about her job add more links in the chain, though she still holds the support of Prime Minister Keir Starmer.

Signals From the Chancellor and Prime Minister

In her recent talks, Reeves made a clear connection between current limits and future tax plans:

  • Asked about keeping the income tax levels steady, she said, “I’m not going to be able to do that,” and tied the change to a new global money scene with ongoing conflicts and trade issues.
  • Both Reeves and Starmer bind themselves to Labour’s promise not to raise VAT, a tax that links to many goods and services.

Her simple words and the global shift together let us sense that some tax moves may come in the new budget.

Looking Ahead

With tough money challenges and a tight public fund, all eyes stay fixed on Chancellor Reeves as she prepares the Autumn Budget. Her work ties growth, support for those at risk, party promises, and strict money limits. The Youth Guarantee binds hope for young people to a strong plan. Yet, tax changes continue to pull on every part of our economy.

For continuous updates on the UK budget and financial news, stay tuned.

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