OMB Director Russell Vought: Layoffs have begun

Government Shutdown Impact - The White House is using potential federal job cuts ("RIFF" - Reduction in Force) as leverage over congressional Democrats during the government shutdown [1][2][3] - Each week of government shutdown is estimated to reduce GDP by approximately 01% [5] - The market has largely ignored the government shutdown, anticipating a resolution and a recoup of lost revenue [5][6] - Historically, government shutdowns have not consistently led to negative market performance [10] Market Sentiment and Economic Factors - The market's focus is currently on earnings and individual company performance [7] - The market's reaction to events is not purely emotional but is influenced by potential impacts on earnings [9] - The market remembers and reacts to events that have historically been important, such as major tariff news [10] - Strong GDP growth (around 3%-38%) provides a buffer to absorb the short-term impact of the shutdown [6]