A bill to fund the U.S. government could be blocked by Donald Trump’s opponents amid the ICE crisis. The government could face another shutdown by the end of the week. What would that mean for the financial markets?
New shutdown looms amid crisis in Minneapolis
After U.S. immigration police (ICE) shot and killed two people within a few days in Minneapolis, unrest is brewing. And the crisis is spreading to Washington, as Democratic lawmakers are now refusing to vote for a bill that would provide additional funding for ICE.
The bill would allocate $64 billion to the Department of Homeland Security (DHS), including $10 billion for ICE. This law enforcement agency has been criticized for its violent actions, which have escalated to the point of shooting at non-aggressive protesters.
Several Democrats have therefore made known their intention to block the vote on ICE funding, including Mark Warner, the senator from Virginia:
I cannot and will not vote to fund the DHS as long as this administration continues these violent federal takeovers of our cities.
The consequences of a new shutdown
The last U.S. government shutdown lasted 43 days between October and November 2025. A little over two months later, the possibility is back on the table, underscoring the deep political crisis the United States is facing.
For the U.S. economy, a shutdown would add to the difficulties of an already tense situation. Economists estimate that the last shutdown cost the United States 0.8 percentage points of growth. Furthermore, the uncertainty could spill over into the stock and bond markets, which are particularly sensitive to instability.
Another notable consequence: key reports on employment, inflation, and spending would not be released or would be delayed in the event of a shutdown. This would force the government to operate on a day-to-day basis and would prompt the Federal Reserve to exercise caution.
Gold and silver continue their rally amid tensions
Between domestic crises, tensions over Greenland, and Donald Trump’s sensational statements, the geopolitical atmosphere is explosive. This has fueled interest in precious metals: gold has set record highs in recent months.
The price of gold crossed the $5,000 threshold for the first time this week
The same scenario applies to silver, which has also been setting record highs since the end of 2025. The price of an ounce of silver surged yesterday, reaching $1,176.50—an unprecedented price level. As for Bitcoin, it continues to fluctuate: it has risen by 0.01% over the past 24 hours.
Surprisingly, Wall Street seems largely unaffected by the ongoing crisis. Both the Nasdaq and the S&P 500 closed higher yesterday. While U.S. political turmoil tends to shake up the markets, there is now another reality: the markets are getting used to a new normal. The U.S. administration’s crisis policy is therefore profoundly changing the way markets react.
