January 19, 2018
Friday January 19 2018
With the deadline for a new budget fast approaching, investors are watching the negotiations in Washington. The aim in Congress is to get yet another temporary agreement in place to keep the government open until February 16. That would be the fourth continuing resolution as Congress wrestles with passing a budget for the fiscal year 2018. The failure to reach an agreement would result in a partial government closure on Saturday January 20. The result among many would be disruption of the flow of economic information to investors.
The immediate shutdown risk depends on whether Congress can reach an agreement. On Thursday, the House of Representatives passed a continuing resolution. Now it is the Senate’s turn where a vote is expected today or Saturday and where passage is not guaranteed.
The last government shutdown occurred in October 2013. At that time, indicators including the employment situation report were postponed and it took some time for the schedule to recycle to normal.