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United States

Report | Insights into the shutdown for January 24, 2018

Summary

​The government shutdown should impact the economy very little because it was so short. But the main issues have been deferred, not resolved. The passed resolution will keep the government open for the next few weeks before funding runs out again. If immigration has not been substantially resolved—no small task in such a short period of time—another shutdown could occur and the next time could be more perilous for the economy if it lasts an extended duration. And the debt ceiling issue will also need to be revisited soon as well. These policy risks are looming over an economy that continues to perform well. The labor market remains incredibly tight, with initial unemployment claims falling to their lowest level in 45 years. The housing market, a laggard during the current economic expansion, continues to make slow progress despite some serious challenges. ​

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