The U.S. administration has increased pressure on the opposition by freezing infrastructure projects in Democratic states.

The New York Stock Exchange recorded new record highs on Thursday, driven by the possibility of the U.S. Federal Reserve lowering interest rates, despite the federal government shutdown affecting the country’s institutions.

The three main indices at the New York Stock Exchange closed at record levels, with the Dow Jones up 0.17%, Nasdaq up 0.39%, and S&P 500 up 0.06%.

The United States entered a government shutdown, commonly called a “shutdown,” following stalled efforts to resolve a budget dispute between Democrats and Republicans.

The U.S. administration increased pressure on the opposition by freezing infrastructure projects in Democratic states and threatened imminent layoffs of government employees. Several federal agencies may also close.

In the event of a government shutdown in the U.S., federal employees become furloughed before resuming work “while receiving delayed paychecks, which negatively impacts the economy,” said Jose Torres from Interactive Brokers.

However, “reduced federal labor-related spending may help reduce the country’s large deficit,” which could in turn lower public loan interest rates, “which is great news for publicly traded companies,” according to Torres.

Another consequence of the federal paralysis is the suspension of some indicators, especially those related to the labor market.

Therefore, “the Federal Reserve will likely adopt a more cautious approach, which may mean a rate cut in October, as the central bank has no data indicating the economy is strong enough to avoid a rate cut,” explained Sam Stovall from CFRA.

Stovall noted that “investors do not expect the federal paralysis to end anytime soon.”

Prominent Democratic Senator Elizabeth Warren urged the U.S. president on Thursday to release the September unemployment figures on Friday as previously scheduled.