Government closure threatens economic stability

Economists warn that a possible government closure provides great uncertainty in the economy that already faces the opposite winds in sectors such as the labor market. According to the Yahoo Financing report, this disorder can fade the markets and consumer morale. Data from the Indexbox platform also indicates that this uncertainty often leads to a shrinkage in business investment as companies delay the main decisions.

Also read: The United States’ relations are tense by converting alliances and economic pressures

Impact on monetary policy and major data

It is expected to stop government jobs to complicate monetary policy by causing a delay in launching major economic data, including the October 3 job report from the Labor Statistics Office. As the labor market was offered to stop signs during the summer, federal reserve officials were ready to closely check this data for their next decision on October 29.

Social security and basic services

While social security, medical care and medical aid are funded through compulsory spending and will continue to be paid, administrative jobs can be disabled. Customer service in social security management, including verification of benefits and treatment corrections, may face a great slowdown. Basic employees such as air traffic monitors and TSA agents will be asked to work without pay.

An economic and wider economic impact

The US -funded US postal service will continue to operate without interruption. However, analysts note that the treatment of mortgage may face a delay as the Federal Federal Insurance Program will be closed on new policies during the closure. Previous closure also led to the suspension of services such as Food and Drug Administration inspections and public access to national parks.

Source: Indexbox Market Intelligence

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