The risk of a U.S. government shutdown is rising as Democrats and Republicans disagree on funding. Shutdown could impact financial markets, delaying key economic data. Shutdown could result in the Federal Reserve being “flying blind” and potential rate cuts. Lengthy shutdown could affect complex trades and regulatory guidance.

White House preparing for possible mass firings during shutdown, a departure from past temporary furloughs. Unclear if move is to slash federal workforce or negotiating tactic. SEC and CFTC could see severe limitations in ability to review corporate filings and oversee markets. Banking regulators and consumer watchdog will remain functional.

A shutdown would freeze the IPO pipeline, hindering companies seeking SEC approval to go public. This could slow down momentum in equity markets, impacting recent IPO boom. Shutdown in 2019 slowed Trump’s deregulatory efforts due to staff furloughs.

Read more at Yahoo Finance: Explainer-How a US government shutdown could affect financial markets