Another shutdown spells deeper pain for U.S. economy: Moody's

 

FILE PHOTO - The dome of the U.S. Capitol is seen beyond a chain fence during the partial government shutdown in Washington, U.S., January 8, 2019. REUTERS/Kevin Lamarque

 

(Reuters) - Another government shutdown could inflict greater harm on the U.S. economy, especially it were to happen only three weeks after the end of the longest ever such closure, Moody's Investors Service said on Tuesday.

 

"If another shutdown occurs, there could be a more severe impact on the U.S. economy than during the recently ended shutdown," the rating agency said in a statement.

 

The recent shutdown began in late December after U.S. President Donald Trump refused to sign a bill to fund the government as he demanded $5.7 billion for building a wall along the border between the United States and Mexico.

 

Last Friday, Trump agreed to fund the government through Feb. 15 in a bid to reach an agreement on border security. He said he would be willing to shut down the government again if U.S. lawmakers do not deliver a deal he finds acceptable.

 

The 35-day partial government shutdown affected some 800,000 federal employees who were furloughed or worked without pay. After the government reopened, these workers are expected to receive missed salaries, but federal contractors will not be compensated.

 

The shutdown's effects "have been concentrated with limited ramifications for the broader economy," Moody's said in a statement.

 

Still the shutdown was a "credit negative" on Moody's top-notch Aaa credit rating on the United States. This caused the rating agency to assess Washington's budget process as "less robust" than other Aaa-rated countries.

 

The U.S. economy was expected to lose $3 billion from the partial government shutdown, the Congressional Budget Office said on Monday.

 

If the government were to shut down again in less than three weeks, it would "complicate negotiations over the debt ceiling," kindling worries about the Treasury delaying its debt payments, according to Moody's.

 

On Monday, Fitch Ratings said another shutdown could raise the risks to U.S. economic growth and corporate earnings in the first quarter.

 

(Reporting by Richard Leong; Editing by James Dalgleish)

 

-- © Copyright Reuters 2019-01-30

If the rating agencies cut the US credit-worthiness (as they should have done years ago), Americans can expect a further increase in interest rates, with all that that implies for consumer spending.....

And the debt Donald added with his tax break for the rich

3 hours ago, webfact said:

The U.S. economy was expected to lose $3 billion from the partial government shutdown

Since the President "owned" the shutdown, he can pay for it.

4 hours ago, webfact said:

"If another shutdown occurs, there could be a more severe impact on the U.S. economy than during the recently ended shutdown," the rating agency said in a statement.

Are you listening trump?

 

4 hours ago, webfact said:

Last Friday, Trump agreed to fund the government through Feb. 15 in a bid to reach an agreement on border security. He said he would be willing to shut down the government again if U.S. lawmakers do not deliver a deal he finds acceptable.

Ah, who am I kidding, of course he isn’t. 

Edited January 30, 20197 yr by Bluespunk

6 hours ago, webfact said:

He said he would be willing to shut down the government again if U.S. lawmakers do not deliver a deal he finds acceptable.

The on-the-ground reality of a Trump border wall will ultimately be decided by Congress.

https://qz.com/1535409/how-trump-and-pelosi-can-both-declare-a-win-on-a-border-wall/

Trump needs to learn that he is not CEO of America, Inc. and that successful negotiations with a co-equal branch of government cannot be a win-lose transaction.

Unfortunately for Trump, while he cannot force a win-lose budget deal the Senate can force a win-lose scenario with a veto-proof budget bill that doesn't require Trump's approval - something he has never experienced in private enterprise. He can no longer kill a deal by "walking away."

It is jus T-rump "Making America Great Again" - Y'all should be supporting his antics.  : >)

...and all for a vanity - product, to keep his base placated!

What a joke this man is!

11 hours ago, Christophers200 said:

It is jus T-rump "Making America Great Again" - Y'all should be supporting his antics.  : >)

Oh come on now. Trump is making America Grate Again. 

The rest of the world is losing interest in US. 

And Brexit et al. 

Just shaking our heads. This is the best of democracy? Sigh