Speaker Boehner Resignation Could Avoid a US Government Shutdown

The shock resignation of U.S. House Speaker John Boehner and his comments on Sunday that Congress will avoid a government shutdown this week potentially remove one source of investor anxiety as Wall Street gears up for a week heavy with economic data and commentary by Federal Reserve policymakers.

Boehner said Friday he will step down from the speakership and leave the House at the end of October. On Sunday, he vowed that Congress will avoid a government shutdown, and he would push through as much unfinished legislation as possible before leaving at the end of October. Speaking on CBS’ Face the Nation, he said the House this week would pass a government funding bill now moving through the Senate, which does not meet conservatives’ demands to cut off money for the Planned Parenthood health group.

Still, other fiscal challenges remain. A long-term federal budget deal and a debt ceiling increase must still be passed by Congress. Disputes over these issues between the two parties and among Republicans will not be resolved by Boehner’s departure.

Via Boehner resignation cuts U.S. government shutdown risk | Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza