With a US government shutdown imminent, what happens to the economy?
1 year, 2 months ago

With a US government shutdown imminent, what happens to the economy?

Al Jazeera  

About quarter of the US GDP is government expenditure. And while that would have some impact on the economy — economists differ over how bad the situation could get — there is also concern that the US’s credit rating could suffer, driving up interest rates for government loans. Earlier this week, Moody’s warned a shutdown would negatively affect the government’s credit: It currently lists the US as having a AAA rating, the highest possible. In case of a four-week shutdown, Moody’s predicts a 0.4 percentage point reduction in the GDP, but that figure is not certain as there’s a compounding effect, Begley said, which could drive that number higher. In lieu of that, Congress could instead push through a stopgap measure — called a “continuing resolution” or CR — to temporarily fund the government while it continues work on the appropriations bills.

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A US gov’t shutdown could negatively affect its credit, Moody’s warns
1 year, 3 months ago

A US gov’t shutdown could negatively affect its credit, Moody’s warns

Al Jazeera  

A shutdown is possible if Congress fails to provide funding for the fiscal year starting October 1. A US government shutdown would negatively affect the country’s credit, credit rating agency Moody’s has warned, one month after Fitch downgraded the United States by one notch on the back of a debt ceiling crisis. US government services would be disrupted and hundreds …

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