“Although the market has become increasingly desensitized to what has unfortunately become a recurring feature of… American politicsthe impact on the economy real is not always trivial,” he said in an analysis on the subject Gilles Moecchief economist AXA IM.
Moëc admitted that it is currently impossible to know how long the more-than-predictable government shutdown from this weekend will last, but he warned that the last one, between December 2018 and January 2019, which lasted 45 days, has left him cost the US economy 0.1% of GDP in the fourth quarter of 2018 and 0.2% in the first quarter of 2019.
One consequence the situation could also have is that the federal agencies responsible for collecting and analyzing data on the economy will stop working, which could cause problems for the Fed as it makes its next interest rate decision in November.
If U.S. lawmakers do not reach a political agreement on funding for federal agencies before the end of this Saturday, the government will shut down much of its services.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
