Jim Cramer explains why he thinks a government shutdown won't have a big impact on the market

Core Viewpoint - The potential government shutdown is not expected to significantly impact the stock market, although it may delay the release of key economic data that influences Federal Reserve interest rate decisions [1][7][8]. Market Reaction to Shutdown - Historical data suggests that the stock market tends to perform well during government shutdowns, with gains observed following two of the last three full shutdowns [4]. - Prediction markets indicate a 70% chance of a government shutdown occurring due to Congress's inability to agree on a stopgap bill [3]. Economic Impact - A government shutdown could temporarily put 800,000 to 900,000 federal workers out of work, with estimates suggesting that each week of shutdown could reduce GDP growth by 10 to 20 basis points according to various banks [5]. - The broader economy may suffer significantly if the shutdown extends beyond a week, as furloughed workers would have less disposable income to spend [6]. Federal Reserve Concerns - The shutdown may delay the release of vital economic data, complicating the Federal Reserve's ability to assess inflation and labor market conditions, which are crucial for interest rate decisions [7][8]. - While Wall Street anticipates another interest rate cut, the Fed may be hesitant to proceed without adequate economic data, although a shutdown could also prompt a cut due to its negative economic implications [7][8].