Again?? Washington scrambles to avert a partial shutdown

Less than three months after the last government shutdown, here we are again. The situation remains fluid, but here’s what we know as we hit “send” on this edition of MoneyNerd.

The bad news: A partial shutdown is likely to happen just after midnight tonight.

The not-as-bad news: It looks like it could be very short (unlike the last one — the longest in U.S. history, remember?).

Here’s the situation: To end the last shutdown, Congress passed bills to fund some parts of the government through September — and some parts through Jan. 30. So here we are.

To avoid a partial government shutdown, lawmakers in both chambers would need to pass funding bills or a short-term continuing resolution to fund the remaining programs and departments by the end of the day Friday. That isn’t going to happen.

The sticking point right now is funding for the Department of Homeland Security (DHS). Democrats are refusing to fund the DHS without accountability measures and reforms to Immigration and Customs Enforcement (ICE). 

On Thursday, several Republicans joined Democrats to reject the vote to advance a package of House bills that included DHS funding. Later that day, Senate Democrats and the White House agreed to separate DHS funding from a larger spending package, temporarily easing the standoff. While the deal doesn’t include ICE reforms, it allows more time for negotiations. 

The Senate plans to pass the remaining funding bills before the Friday deadline and a short-term continuing resolution that keeps DHS funded for two weeks.

However, even if the Senate carries out the deal, the House still has to pass the measures, too. The House isn’t in session until Monday, which means that the government will very likely partially shut down at 12:01 a.m. on Saturday. It wouldn’t be a full shutdown (like last time) since some spending bills have already been approved by Congress — food assistance, for example. 

So long as the House approves the spending packages and the stopgap next week, any impacts would be minimal and short-lived.  

We’ll keep tracking all the shutdown machinations — to learn the latest, click here. 

- Anna Helhoski

After three straight cuts, the Federal Reserve Open Markets Committee (FOMC) opted to pause rates at 3.50% to 3.75% at its meeting this week. 

In a press conference on Wednesday following the Fed’s decision, Fed Chair Jerome Powell said that indicators show the labor market is stabilizing after some softening, which signals that rates are appropriately set. He added that the FOMC would make “similar judgments” on inflation and weigh both indicators together when setting policy.

“Certainly, a weakening labor market would be an argument for loosening,” Powell said. “But what's happening with inflation? If inflation were at the same time getting worse, you just have a very difficult situation there. So we will be looking at both.”

After the rate decision, Powell declined to comment on the Department of Justice investigation into the Federal Reserve, though he has previously called the probe politically motivated. Read more about how tensions between the central bank and the Trump administration have escalated.

On Friday, Trump announced Kevin Warsh as his nominee to replace Powell as Fed chairman when Powell’s term ends in May. Warsh previously served as a member of the Federal Reserve Board of Governors from 2006 to 2011. The position requires Senate confirmation.

The futures market CME Group Fed Watch Tool shows a strong consensus for another pause at the FOMC’s next meeting, March 17-18.  

If you want to go deeper into how the rate cut will impact specific financial products, our team of reporters has you covered:

- A.H.

President Donald Trump just concluded the first year of his second term in office and most Americans are not pleased with the economy. Consumer sentiment is down more than 20% since he took office, and multiple recent polls show majorities of Americans disapprove of Trump’s handling of the economy or say conditions have worsened.

So what are Americans reacting to when they talk about Trump’s economy? Here are some of the key features that defined it in Trump’s first year back in office. 

Tariffs are the quintessential feature of Trump’s economy. In his first year, Trump expanded sweeping tariffs on imports from nearly every country in the world, including key U.S. trade partners Mexico, Canada and China. Trump has also placed tariffs on specific goods like steel and aluminum that sit on top of his “reciprocal” tariffs. He has threatened to add more tariffs in 2026.

The levies have brought the effective tariff rate to 16.8% — the highest level since 1935, according to Yale Budget Lab.

Trump argues the tariffs are necessary to protect America’s economic interests and national security. But most of Trump’s tariffs could soon be undone if the Supreme Court sides with the lower courts, which ruled that the White House didn’t have the legal authority to impose tariffs without Congress. A decision is expected soon.

Despite some tariff-linked price hikes, inflation has largely continued to slow, extending a cooling trend since the highs of 2022.

The latest inflation rates from the consumer price index showed inflation grew at an annual rate of 2.7% in December 2025 — still 0.7 percentage points above the Federal Reserve’s 2% target.

Areas of persistent inflation include housing costs, which have continued to rise more rapidly. Among groceries, beef and coffee became more expensive, while egg prices fell after multiple years of spikes due to the avian flu. Used car and truck prices edged lower after years of continuous growth, and gas prices are also down.

The U.S. labor market softened in 2025 as job growth and hiring slowed compared to prior years, reflecting weaker business confidence in the economy and uncertainty tied to trade and other policies.

Americans’ perceived outlook for job prospects is grim, according to the Jan. 8 Survey of Consumer Expectations by the New York Federal Reserve, which found that more people expect to lose their jobs in the next 12 months, while expectations of finding a job hit a record low for the survey.

Find out what else shaped Trump’s economy in his first year (and how it all affects consumers), including the longest-ever government shutdown, a shrinking federal workforce, a weaker dollar and a stock market marked by sharp swings.

- A.H.

Gold can be a stable resource during uncertain times, and it’s really gotten in its element (get it?) amid a slew of U.S.-led geopolitical activity. 

Goldman Sachs recently projected that gold could reach $5,400 an ounce by the end of 2026 — a level it blew past this week, briefly flirting with $5,600 an ounce on Wednesday.

It’s good news for gold holders, but kind of a moot point for those without. Translation: I’m not buying any bullion during my next Costco run. However, if there ever was a time to shop around grandma’s gold ring … I don’t have the heart, but if you do, read this before you sell an heirloom.

And here are a few Nerdy tips for selling gold: 

 - Tommy Tindall

Senior news writer Anna Helhoski breaks down the precious-metals rally with investing writer Sam Taube. They discuss why investors treat gold and silver as “safe havens,” how a weakening U.S. dollar and tariff-driven uncertainty can move prices, and what to consider if you’re deciding between physical metals and gold ETFs.

Take inventory of your streaming services. The best streaming providers offer content you enjoy at a price you can afford. See how different services compare — and figure out how to fit your favorite shows into your budget.

Learn how to handle credit report errors. Errors on your credit report can hurt your score. Here’s how to dispute inaccurate information with the credit bureaus. The credit Nerds explain.

Consider shoulder season for your next trip. Traveling in the time between high and low tourist seasons can mean fewer crowds and better deals on flights and hotels. Travel writer Sally French tells you why.

 - Courtney Neidel

Algorithmic pricing is here, and this could mean paying more for your groceries than someone right next to you - even shopping at the same store. We’ll be uncovering what’s going on here, including a groundbreaking investigation into Instacart.

Here’s what else you may have missed this week from NerdWallet: