New York CNN —Goldman Sachs is warning clients that Washington is on a collision course with its first government shutdown in five years.
A shutdown later this year would wipe out 0.2 percentage points from growth per week, according to Goldman Sachs projections.
Assuming just “modest” economic and market impact, a government shutdown should have “little effect” on central bank policy, according to Goldman Sachs.
However, Goldman Sachs said a “prolonged” shutdown that starts in October could add to the arguments in favor of the Fed keeping policy on hold at the November meeting.
The 2013 shutdown delayed the release of most federal economic reports, including ones on inflation, jobs and retail sales.
Persons:
New York CNN — Goldman Sachs, ” Goldman Sachs, Goldman Sachs, Greg Valliere, Kevin McCarthy, ” Valliere
Organizations:
New, New York CNN, Justice Department, Fitch, Washington, Social Security, AGF Investments, Federal Reserve
Locations:
New York, Washington, Ukraine, —