The Dow Jones (DJIA) is set to open Tuesday’s trading session in the red following a stark warning from Vice President J.D. Vance.
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“I think we’re headed to a shutdown,” Vance said after President Trump met with top congressional leaders at the Oval Office in an attempt to reconcile differences between the Democrats and Republicans. The meeting failed to produce any progress on extending government funding, with Senate Democratic Leader Chuck Schumer reiterating: “We have very large differences.”
Trump Warns of Federal Layoffs as Shutdown Odds Climb
Trump has warned that a shutdown could result in significant federal layoffs. In a letter sent out earlier this week, the Office of Management and Budget said that it would use a shutdown to “consider Reduction in Force (RIF) notices.”
Without a funding extension, the government is set to close its doors at 12:01 a.m. Eastern Time on Wednesday for the first time since 2018. On prediction platform Polymarket, the odds of a shutdown this year have surged to 85%, rising by 12% during the past 24 hours and 17% during the past week.
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