- Knowing about US shutdown shortly
- Recent emergence of issue.
- Technical outlook on USD Index
In United States politics, a government shutdown occurs when Congress and the President fail to pass appropriations legislation funding government operations and agencies.Government shutdowns have the effect of disruption to government services and increased cost to the government due to lost labor. During the 2013 shutdown Standard & Poor’s, the financial ratings agency, stated on October 16 that the shutdown had “to date taken $24 billion out of the economy,” and “shaved at least 0.6 percent off annualized fourth-quarter 2013 GDP growth.
Economic data shows that despite the inconvenience arising from a protracted government shutdown (such as the one seen in 2013), any GDP damage or falling job market confidence that results can be managed with relative ease. For example, despite seeing payment delayed to 1.3 million workers, and 800,000 employees locked out,confidence in the job market recovered within a month of the 2013 shutdown,and GDP growth slowed only 0.1-0.2%