Economists warn of costs from looming government shutdown

Economists told CBS News that a potential federal government shutdown at the Sept. 30 funding deadline (which could take effect Oct. 1) would halt pay for many federal workers, ripple through federal contracting and procurement, and shave roughly $7 billion from the U.S. economy for each week the shutdown continues. The reporting cites EY‑Parthenon chief economist Gregory Daco for the $7 billion/week estimate, references the 2018–2019 34‑day shutdown that left about 800,000 workers unpaid, and flags secondary effects including weaker consumer and investor confidence and delayed economic data (e.g., the Oct. 3 jobs report) that could complicate Federal Reserve decisions.