WSJ What’s News: With a Deal Unlikely, Government Shutdown Looms

Date: September 30, 2025
Host: Alex Ossola

Overview

This episode centers on the imminent threat of a U.S. federal government shutdown, its far-reaching effects across the public and private sectors, and notable business and policy headlines from Wall Street and Washington. Key guests include WSJ economics reporter Justin Lahart, national security correspondent Michael Gordon, and reporter Liz Essley White. The show also touches on developments in the pharmaceutical sector, EV tax credits, and a major AI infrastructure deal with Meta.

Government Shutdown: Causes, Consequences & Political Dynamics

The Looming Shutdown

• [00:56] The government is “mere hours away from a shutdown,” with funding set to lapse just after midnight unless a stopgap spending bill is passed. Prospects for a deal are “increasingly remote.”
• President Trump signaled both a likelihood of shutdown (“could use a lapse in funding to flex his executive powers at Democrats’ expense”) and a degree of openness for negotiation on health care.

Impact on Federal Workers and the Economy

• Guest: Justin Lahart, WSJ Economics Reporter

  • Federal Employees:

    • “People think upwards of 800,000 workers would be furloughed so they wouldn't be working.” ([02:08])
    • The last (partial) shutdown was in 2018-2019: 350,000 furloughed; 2013’s was about 800,000.

  • Loss of Economic Data:

    • “The Bureau of Labor Statistics won't release or collect any economic data, which includes this Friday's jobs report.” ([02:36])
    • “When we have less economic data or we don't get to see economic data, we're flying blind. … For the Fed, it's harder for them to make a decision about rates.” ([02:49])

  • Private Sector Effects:

    • “There's a lot of government contract work that goes on so those folks won't be getting paid… The coffee shop federal employees go to… People who have businesses set up around national parks—well, national parks are closed…” ([03:14])

  • GDP & Economic Growth:

    • “When the government shuts down, it does shave some growth off. GDP does not grow as quickly… There is a rebound, but… there is some business that is lost forever.” ([03:39])

National Security: Military Readiness and Political Overtones

Secretary Hegseth’s Address at Quantico

• [05:24] Defense Secretary Pete Hegseth held a “rah rah speech” at Quantico, focusing on toughening physical standards in the military even “if it means that women would be excluded from combat roles.”
• Hegseth “railed against diversity and inclusion.”
• Notably, President Trump attended and “gave a very striking speech about using the military potentially in American cities to quell disorder.” ([05:24])

Military Reaction

• Guest: Michael Gordon, WSJ National Security Correspondent
  • “The military was pretty stoical throughout. They're trained to be apolitical… There was occasionally some nervous laughter… The military is not comfortable with that. They're not really tuned to hear speeches in which one political leader assails another.” ([06:04])

Strategic Shifts Announced

• Increased use of National Guard and active duty military in American cities
• Growing military emphasis “in the Caribbean… partly directed in intimidating Venezuela and partly at drug traffickers”
• New defense strategy to “emphasize Western Hemisphere defense while still taking note of the challenge from China” ([06:39])

Market & Business Updates

Stock Market Snapshot

• “A rally in pharmaceutical stocks helped lift major indexes today, overcoming worries about a government shutdown and new data pointing to a decline in consumer confidence.” ([04:05])
  • Dow: +0.2%
  • Nasdaq: +0.3%
  • S&P 500: +0.4%

Texas Stock Exchange

• SEC approved TEXI (Texas Stock Exchange) to operate, targeting New York’s dominance ([04:05])

ExxonMobil Job Cuts

• ExxonMobil to cut 2,000 jobs worldwide; almost half in Canada (at subsidiary Imperial Oil) ([04:05])

EV Tax Credits Expire

• The $7,500 electric vehicle tax credit expired last month.
  • Guest: John Murphy (Take on the Week excerpt):
    • EV sales peaked in anticipation, but “once that drops off, we're probably going to see something far below 10%... it's a subpar product at a higher price.” ([08:51])
    • “We are probably a very long way off from actually making that work.” ([09:13])

Corporate Moves

• Spotify: CEO Daniel Ek to step down, with Alex Norstrom & Gustav Soderstrom to become co-CEOs ([09:30])
• CoreWeave-Meta Deal: CoreWeave secures a contract with Meta worth up to $14.2 billion for AI cloud infrastructure ([09:30])
• OpenAI: Launches new social media app for its AI video generator; targets TikTok, YouTube, Meta ([09:30])

Major Health Policy Developments

Trump Rx: The Government’s New Discount Medicine Site

• White House Announcement: New site for Americans to buy certain medications directly, at discounted rates negotiated by the government ([10:50])
• Guest: Liz Essley White, WSJ Reporter
  • Limited details: “Pfizer is committed to offering some of its drugs on the site,” many of which are already in its existing patient assistance program ([11:03]).
  • Most Americans already “have private insurance or are on Medicare or Medicaid… already getting some discount off the list price.”
  • Pfizer’s Role: “Pfizer is the first company to say we've made a deal with the Trump administration… They'll offer a most favored nation price… but exact details are confidential.” ([11:34])
  • What Pfizer Gets: “A three-year grace period, a reprieve from national security related tariffs… it won't be subject to what are called 232 tariffs.” ([12:09])
    • “Great for Pfizer, which has quite a large manufacturing footprint outside the United States.” ([12:13])

Notable Quotes & Memorable Moments

• “We’re flying blind a little bit.” – Justin Lahart on the lack of economic data in a shutdown ([02:49])
• “The military is not comfortable with… speeches in which one political leader assails another.” – Michael Gordon ([06:04])
• “First and foremost... it's a subpar product at a higher price.” – John Murphy on EVs in the wake of tax credit expiration ([08:51])
• “Pfizer is the first company to say we've made a deal with the Trump administration… They'll offer a most favored nation price…” – Liz Essley White ([11:34])

Timestamps for Important Segments

• [00:56] — Government shutdown update and political dynamics
• [02:08] — Federal worker furloughs explained
• [02:49] — Economic impacts: lack of data, GDP, private sector
• [05:24] — Secretary Hegseth’s address & Trump’s unprecedented speech to military
• [08:17] — Auto industry after EV tax credit expiration
• [09:30] — Big business headlines: Spotify, CoreWeave, OpenAI
• [10:50] — Launch of Trump Rx, government drug pricing deal

This episode delivers a concise but comprehensive look at the potential government shutdown—its causes, cascading economic consequences, and the shifting sands of U.S. politics and industry as Washington’s paralysis looms.