Government shutdown threatens to have bigger impact on economy
The government shutdown, one of the longest ever, could have a bigger impact on the economy if it continues much longer and starts to hit business or consumer confidence, economists said.
Bank of America Merrill Lynch economists cut their forecast for fourth-quarter growth to 2.8 percent, down 0.1 percentage point, and said they may have to trim their first-quarter estimate of 2.2 percent even more if the shutdown continues.
Economists said the fight between President Donald Trump and Democrats over his demand for a border wall could end up complicating the government’s handling of the debt ceiling, which becomes an issue March 1 and would have the biggest impact on the economy if not resolved.
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