U.S. shutdowns stir worry but rarely dent the economy long-term
Reuters · Just In
Reuters
Just In
The U.S. government shutdown has thrown the brakes on the flow of federal economic data at a moment of uncertainty and division among policymakers but history shows the economy usually doesn't suffer when the government is closed.
Breakdown
- Shutdowns disrupt the flow of federal economic data, creating uncertainty.
- Historically, shutdowns have been short and have not had lasting economic effects. 14s
- Federal Reserve policymakers must rely on private surveys during shutdowns, which are seen as less reliable. 34s
- Financial markets often experience short-term declines during shutdowns but typically recover quickly. 1m 27s
- The 2018-2019 shutdown saw a market drop followed by a swift rebound. 1m 36s