US President Joe Biden and one of his senior advisers warned on Monday that a federal government shutdown may result in widespread difficulties, including the loss of food benefits for almost 7 million low-income women and children, per Reuters. 

He said he and House Speaker Kevin McCarthy had agreed a few months ago on spending levels for the government. The Republican-controlled House of Representatives may seek this week to approve drastic budget cutbacks that the Democratic-controlled Senate would almost likely reject. While the changes would not become law, a failure by both houses to reach an agreement might result in a partial government shutdown by next Sunday.

Market reaction

As of writing, the US Dollar Index (DXY) was down 0.02% on the day at 105.92.