GWhite House economic advisor Kevin Hassett said the ongoing U.S. government shutdown could end this week. This offers a possible reprieve to investors closely watching political and economic developments.
Hassett’s Optimism Signals End to U.S. Government Shutdown
Speaking on CNBC’s “Squawk Box,” Hassett noted that the Trump administration remains optimistic about resolving the standoff soon. Although he warned that stronger measures could follow if Democrats refuse to cooperate.
The shutdown, now in its third week, has raised concerns across markets as lawmakers continue to clash over funding priorities. Analysts are also tracking how the unusual U.S. CPI release could shape upcoming Fed rate decisions and crypto sentiment.
Republicans have pushed for a short-term resolution to the government shutdown at existing levels. However, Democrats demand that any deal includes additional spending for health care and an extension of key Affordable Care Act tax credits.
Hassett suggested that political optics may be slowing progress. He claimed Democrats were delaying a vote to reopen the government until after the weekend’s “No Kings” protests against President Donald Trump.
“Now there’s a shot that this week, things will come together, and very quickly,” he said, adding that Democrats might help break the impasse once the demonstrations end.
Government Shutdown Pressure Mounts as Markets Await Inflation Data
The White House advisor also said the administration may take “stronger measures” if the stalemate continues, though he didn’t specify what those might involve. The comment reflects growing frustration inside the White House. The government shutdown continues to disrupt federal operations and raises pressure on both parties to reach a deal.
The scenario is closely monitored by market analysts since it has coincided with an important economic data week. Crypto holders are waiting new U.S. inflation data, which may impact the subsequent rate move by the Federal Reserve. Recent market data shows rising odds of an October Fed rate cut, coinciding with renewed strength in Bitcoin.
Decreased inflation rate would rekindle optimism over imminent reduction in rates and provide solace to liquidity-sensitive assets such as crypto. Thus, creating uncertainty around fiscal momentum heading into year-end.
Prediction Markets Favor Government Shutdown Ending Before Month’s End
Data from Polymarket prediction market show traders increasingly expect the U.S. government shutdown to end between October 23 and 26. An extended shutdown could delay crypto ETF approvals even as investor demand continues to rise.
According to Polymarket data, that window now carries the highest probability among all active outcomes. It has risen from below 10% a week ago to about 35% as of the time of writing.
By contrast, the likelihood of a government shutdown resolution after mid-November has slipped to around 27%, suggesting markets are beginning to price in a breakthrough. Volumes on Polymarket have also increased sharply.
This reflects heightened investor attention to the timing of any fiscal reopening, which could influence near-term market sentiment.
Source: https://coingape.com/hassett-sees-shutdown-ending-soon-crypto-awaits-inflation-data/
