Goldman Sees GDP, Markets Weathering Likely Government Shutdown
- US federal agencies set to run out of appropriations Sept. 30
- Goldman sees partisan impasse leading to temporary shutdown
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Goldman Sachs Group Inc. sees a short-term hit to the US economy, with a subsequent rebound, in the likely event of a federal government shutdown sometime after appropriations run out Sept. 30.
“The federal government looks more likely than not to temporarily shut down later this year,” Goldman’s chief US political economist, Alec Phillips, wrote in a note to clients Sunday. That’s thanks to a lack of consensus in Congress over annual spending bills for the fiscal year that starts in October.