US Debt Watch: Time for lengthy shutdown?
Next week, funding to the U.S federal government will cease, if Congress fails to deliver 12 spending bills – or so-called appropriations – before September 30th. Biden’s government will shut down aside from a few select departments, leaving hundreds of thousands of federal employees without a paycheck.
A government shutdown is imminent
My sentiment is shared with Democratic Congress members and aids according to a recent Politico survey. But I think the upcoming shutdown might be longer than even Democrats realize.
A government shutdown could cause a bit of a headache for investors with an interest in the U.S as it would prevent key market data including GDP, employment and inflation data from being released. The Treasury will continue to live up to their debt obligations which is why a government shutdown, overall, is regarded as less of a threat to global financial markets.
Price action during shutdowns typically results in a modest rally in …..