WASHINGTON — The United States government has entered a partial shutdown after lawmakers in Congress failed to pass a funding bill for the new fiscal year, triggering economic uncertainty at home and fresh concerns across world markets.

The deadlock has forced the furlough of an estimated 750,000 federal employees, while thousands more, including air traffic controllers and law enforcement officers, will continue working without pay. Essential services such as Social Security payments and mail delivery will continue, but a wide range of federal programs—from small business loans to research grants—have been suspended.

The immediate impact has been felt on global financial markets. Asian shares slipped in early trading, while European investors braced for volatility as Wall Street futures wavered. Analysts warn that investor sentiment could sour further if the impasse drags on, raising questions about U.S. fiscal stability and debt management.

“The length of this shutdown will determine whether it is a short-lived disruption or a major shock,” said Austan Goolsbee, President of the Chicago Federal Reserve, noting that prolonged paralysis could erode confidence in the U.S. economy.

Beyond markets, international trade flows are expected to feel the strain. Export licensing delays, customs slowdowns, and interruptions in government-backed contracts could ripple across industries reliant on U.S. oversight, particularly aerospace, agriculture, and defense. Countries tightly integrated with U.S. supply chains are already preparing for disruptions in logistics and regulatory approvals.

The uncertainty has put pressure on the U.S. dollar, with some investors shifting toward alternative safe havens such as gold and the Swiss franc. Emerging markets are particularly vulnerable, as volatility in U.S. capital flows could lead to currency swings and higher borrowing costs worldwide.

Foreign governments and aid agencies are also bracing for setbacks. Many U.S.-funded development and humanitarian programs are expected to face delays, threatening projects in health, education, and food security across Africa, Asia, and the Middle East. Analysts caution that prolonged interruptions could deepen vulnerabilities in aid-dependent economies.

The International Monetary Fund (IMF) has already revised down global growth forecasts amid slowing trade and investment flows. Economists estimate that every week of shutdown could shave 0.1 percentage points off annualized U.S. GDP growth, with spillovers to global demand.

“Given the size of the U.S. economy, even moderate weakness has international consequences,” said a senior IMF official. “Extended political paralysis risks amplifying existing global headwinds.”

The severity of the fallout will depend largely on how quickly lawmakers can strike a deal. A short shutdown could have limited effects, but an extended standoff would weigh on growth, disrupt global supply chains, and push up borrowing costs worldwide.

For now, the world is watching Washington closely, aware that what began as a domestic political stalemate has the potential to become a global economic storm.