FT: Shutdown gives Democrats no real leverage

The Democratic Party is betting heavily on the government shutdown, believing it will give them leverage in negotiations with Donald Trump and the Republicans. However, as the Financial Times notes, this strategy may backfire: the shutdown strengthens Trump’s position, allowing him to dictate terms and gain additional political advantages.

Source Financial Times

The situation is particularly critical for economic data: due to the shutdown, the Federal Reserve loses access to key statistics, including inflation and employment figures, making it harder to decide on interest rates. This damages U.S. economic stability and undermines America’s global reputation as a reliable financial and political leader.

FT stresses that Democrats are trying to use the extension of Obamacare subsidies as their main bargaining chip, but the strategy is likely doomed. Voters view the shutdown not as a sign of Democratic strength but as weakness, while Trump and Republicans seize the opportunity to advance their own goals and present themselves as the side in control.