Trump’s government shutdown is costing the economy at least $1.2 billion per week

WASHINGTON, DC - MARCH 07:  Chairman of the Council of Economic Advisers Kevin Hassett waits for the beginning of a hearing before the Joint Economic Committee March 7, 2018 on Capitol Hill in Washington, DC. The Joint Economic Committee held a hearing to focus on "The Economic Report of the President."  (Photo by Alex Wong/Getty Images)

Kevin Hassett

White Home Council of Financial Advisers chair Kevin Hassett says that “I don’t actually anticipate to see large financial results of this [government shutdown] … assuming that it ends comparatively shortly.” By that, he meant that the shutdown is costing the U.S. economic system a mere $1.2 billion per week. Different analysts aren’t as optimistic.

JPMorgan’s Michael Feroli estimates the shutdown’s results as being two to 4 occasions what Hassett forecast. It’s additionally early days now, going by Donald Trump’s threats about retaining issues shut down for months or years, and “every month that it goes ahead, the impact grows exponentially,” in line with Financial institution of America Merrill Lynch’s Ethan Harris. “If it goes on for 1 / 4 … now you’re beginning to actually change spending habits.”

Fitch Scores warned of doable harm to the federal authorities’s credit standing, not simply due to broader political turmoil: “The principle implication for our U.S. sovereign credit score view will depend upon whether or not we really feel this shutdown foreshadows a extra pronounced destabilization of fiscal policymaking, together with brinkmanship over the debt restrict.”


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