The U.S. government is facing a potential shutdown due to budget negotiations deadlock in Congress. The White House warns of potential damage to the economy and national security. Goldman Sachs predicts a temporary shutdown is increasingly likely, which could reduce quarterly annualized growth by around 0.2 percentage points for each week it persists. Historically, financial markets have not shown significant reactions during government shutdowns, with the S&P 500 recording above-average returns in the year following a shutdown.