Developments in Congress this week will be crucial to determine whether the government enters a shutdown at the end of September. Economists at TD Sec
A shutdown that lasts for one month could shave 0.2pp or slightly more from GDP growth
Estimates suggest a shutdown that lasts for one month could shave 0.2pp or slightly more from GDP growth, but such long government shutdowns have historically been rare. In other words, shutdowns don't tend to matter until they do. The production of economic statistics can also be delayed or canceled, as has occurred in the past, which could add additional volatility to markets.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
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