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What Happens During a US Government Shutdown?

Talk of a U.S. government shutdown is again in the air. Funding for the vast menu of federal activities, foreign and domestic, is due to run out after Dec. 8, and Republicans and Democrats in the U.S. Congress are negotiating a spending bill to carry beyond that date. Without a deal, the U.S. will encounter what’s officially called a “spending gap,” which triggers a carefully prescribed, but still disruptive, halt to Washington’s work.1. Why might the government shut down on Dec. 8?Since Oct. 1, when the 2018 fiscal year began, the U.S. has been operating on temporary funding provided by a “continuing resolution” passed by Congress and signed by President Donald Trump. It runs through Dec. 8, and leaders in Congress are negotiating an extension. At the same time, they’re juggling demands from various factions in both parties to stabilize insurance markets, extend a program to protect from deportation some young people brought to the U.S. illegally as children, and raise budget caps for defense spending.

Source: What Actually Shuts Down During a U.S. Government Shutdown – Bloomberg [1]

USD/CAD – Canadian Dollar Improves to 2-Week High, Trade Balance Next [2]

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam [8]

Senior Market Analyst, UK & EMEA at OANDA [9]
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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