Wang Chao, Sue Chao
Trump signs a temporary bill on spending, and the US government will open the door for three weeks until February 15th. But if Congress and Trump fail to reach an additional agreement within three weeks, the US government may fall back in mid-February.
The US government is officially closed! After the US Senate and the House of Representatives adopted the Temporary Expense Act, Trump officially signed the bill and the US government will open the door for three weeks until February 15th. The main assets did not change much because of the end of the deal, and US stock futures ended trading, and the prices of the bitch did not hesitate. Affected by the agreement reached in the day-by-day agreement, the three major US stock exchanges closed on Friday. But if Congress and Trump fail to reach an additional agreement within three weeks, the US government may fall back in mid-February.
The House of Representatives unanimously voted the decision to fund a number of federal agencies by 15 February. Previously, the Senate approved a temporary funding bill that allowed Congress and Trump to negotiate on border security issues for three weeks. After Trump signs the bill, hundreds of thousands of federal officials may return to work and get their wages back early on December 22.
US President Trump said he has a strong alternative but hopes he will not be used, he will sign an agreement that will allow the government to continue working until February 15th. Speaking at the White House, Trump said he hoped to sign the agreement as early as Friday.
Previously, LaGuardia Airport in New York was temporarily closed due to a flight shortage on Friday, worsening flight delays in the US.
It is worth noting that if Congress and Trump fail to reach an additional agreement within three weeks, the US government may fall back in mid-February.
Once the government resumes, the Democratic and Republican parties will establish a conference committee to develop the Internal Security Act. However, if Congress does not reach the border security agreement Trump wants, Trump threatens to let the government shut down again or declare a state of emergency at national level to circumvent Congress.
Trump is threatened:
"We have no choice but to build a solid wall or a steel barrier.If we do not receive a fair attitude from Congress, the government will close again on February 15, or I will use the powers that the US law and constitution give me to resolve.
I hope people can read or hear my speech on the border wall.This is by no means a concession.It takes care of millions of people who have been seriously affected by the closure of the government. If the agreement can not be reached within 21 days, the government will close!
Part of the US government's closure lasts for 35 days.
The impact of government closure is growing. Following the partial closure of the government on December 22, some 800,000 federal workers were forced to rest or work with arrears. In addition, due to staff shortages at the airport, this also led to a major delay in US flights.
The three major stock market indices on the US stock market were affected by the day-to-day deal, while S & P closed down 0.85% and Dow closed down 0.75%. Nasdaq rose by more than 1.29%.
UBS estimates indicate that the US government's closing price is staggering – at least $ 1 billion a day.
Brian Rose, senior economist at UBS Global Wealth Management, estimates that the economic losses caused by the US government's closure at this stage are $ 1 billion a day. At the same time, if the US economic growth in the first quarter is zero or negative (the US government has recognized this opportunity this week), even if the government closes, economic growth in the second quarter will not be a sharp leap, partly because it may be difficult to recruit new employees. Rose pointed out:
Calculating the direct impact of government closure – the actual loss of government spending is purely mechanical: in terms of total lost time, the government stops the economy by 0.1% every two weeks. But in terms of indirect impact, the reaction of consumers and businesses is difficult to quantify. The problem now is: with the impact of different news streams, such as the stock market trend and the latest Washington news,How will consumer confidence change and how this change will affect demand, if any.
Rose's opinion is also backed by Bank of America economist Joseph Sun, who arguesThe reaction of consumers and businesses is becoming a key issue.
According to the latest data collected by Bank of America, consumer confidence has deteriorated considerably since the beginning of December, as government closures are distorting financial markets and economic activity. According to the bank's consumer survey, although most respondents still feel good about the economy, recent trends show consumer concerns for the economy have increased.
In particular, when asked how the economic situation compares with a year ago,34% of respondents point out that the economic situation has deteriorated,This is the highest level since Bank of America began to ask this question in April.
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