Key control
- Legislators in Congress did not approve a measure keeping the United States government financed by a midnight deadline, which means that the government will close.
- Some offices will close. Crucial functions such as the Army and Social Security will continue.
- With federal workers at home without pay, the economy will receive at least a temporary blow. Key economic reports could be delayed.
The federal government has closed for the first time in more than six years.
A midnight deadline arrived and left without Congress to pass a measure to maintain the open government. Republicans and Democrats in Congress are in a confrontation on medical care funds: Democrats have refused to approve a financing measure unless Republicans undo medical care cuts in the large tax and bills law that were approved earlier this year.
Republicans have the White House, as well as the majorities in both Congress cameras. However, they need the support of the Senate Democrats to approve a financing measure, but none of the parties has agreed to commit.
What this means for the economy
A government closure is expected that began at midnight to have a moderate impact on the economy that will worsen the longer, since hundreds of thousands of government workers will remain at home without pay and the services are suspended. It is likely that important economic data is also delayed until after the end.
It is likely that hundreds of thousands of federal workers will stay at home without paying for time. Some government offices will be closed, including national parks, the administration of small businesses and other services.
It was not yet clear exactly what they would be closed. Other functions will continue, such as the military and Social Security.
Economists anticipate that the closure will cause a moderate coup to economic growth, which will continue the more it accelerates. The closure could also delay the release of crucial economic data, including Friday’s report on the labor market of the Office of Labor Statistics.
The last closure of the government, in 2018 and 2019, lasted 34 days.
The markets have continued to rise in front of the closure. The Dow ended on Tuesday in a record, with the three registration earnings.
