The U.S. government shutdown could end this week, White House economic advisor Kevin Hassett said on CNBC’s Squawk Box. He added that the Trump administration is optimistic about a solution.
The shutdown is now in its third week, and investors as well as crypto markets are watching closely as Washington works to restore funding. Hassett noted that the timing may depend on political events, including the weekend’s “No Kings” protests against President Trump.
Moreover, Hassett warned that the administration may take “stronger measures” if Democrats do not cooperate. He said, “Now there’s a shot that this week, things will come together, and very quickly.”
Meanwhile, the shutdown has raised concerns across markets as lawmakers clash over funding priorities. Analysts are also monitoring U.S. inflation data, which could shape upcoming Federal Reserve decisions.
On one hand, Republicans want a short-term resolution at current funding levels. On the other hand, Democrats want additional spending for healthcare and an extension of key Affordable Care Act tax credits. Hassett explained that Democrats may be delaying a vote until after the protests. He added, “The moderate Democrats will move forward and get us an open government.”
As a result, the ongoing shutdown has affected federal operations and created pressure to reach a deal. Market watchers are paying attention because new inflation data may influence Fed interest rates. Some analysts expect a rate cut in October. Consequently, crypto investors are watching closely, since lower rates could support Bitcoin and other digital assets.
Furthermore, prediction markets are tracking the shutdown. Polymarket data shows traders now expect the government to reopen between October 23 and 26. The probability for this window has risen from below 10% to about 35%.
By contrast, chances of ending the shutdown after mid-November have dropped to around 27%. Polymarket volumes have increased sharply, showing that investors are focused on timing.
Finally, Hassett said, “I think the White House is going to have to look very closely… at stronger measures that we could take to bring them to the table.”
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