Good morning. The US government shut down at a minute after midnight yesterday, after Democrats and Republicans failed to reach a deal on an interim spending bill. More than 24 hours in, and as each side seeks to blame the other for the crisis, there is no sign of a compromise being reached – and every sign that Donald Trump will seek retribution against Democratic states.
About 750,000 federal employees have been furloughed, and many government programmes have been paused. If it goes on for longer than a few days, the cost in lost GDP could run into the billions. And the consequences could be lasting: Trump has threatened retaliatory mass firings that could permanently reshape the administrative state.