The head of the New York Fed, John William, was the most high-profile in the Fed to officially announce and see the shutdown as a drag of the US economy. Last week, the Fed chairman, Jay Powell, said that the shutdown would not cause any lasting damage; however, since there is no sign showing the government shutdown is near its end.
The House Speaker, Nancy Pelosi, demanded Trump to delay his speech to the State of the Union then Trump grounded Pelosi's troop visit by restricting her using a military plane. It seems that either side is willing to make any degree of compromise; therefore, it is extremely difficult to predict when the government shutdown will stop. So far, the financial market has not been significantly affected by the shutdown, instead the market is much more excited about the progress happening to the trade talk between the US and China. The most direct effect from the government shutdown is that some government workers do not receive their pay cheques. This will hurt their living and this could have multiply effects. However, such effect is not going to be a significant damage, since the US economy is so massive. The real problem is the political uncertainty rising surrounding this government shutdown. The US government and the US Congress are fighting over the government shutdown and they are not going to focus on their job as the market regulator.
From the current stage, it is hard to see the real significant impact of the government shutdown on the US economy.
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