Senate Majority Leader Chuck Schumer (D-N.Y.) stated he expected a continuing resolution to pass by this Thursday, CBS News reported. Now, assuming the current continuing resolution becomes law, legislators do appear to have some momentum to create a budget before the March deadline. A government shutdown would likely be a significant drag on financial markets as a shutdown of any length would be a material hit to U.S. economic growth. The probable passage of a continuing resolution, which would avoid a potential January government shutdown, is therefore likely a positive in avoiding a material risk. However, there would then be some chance of a March shutdown if budget progress stalls.

Source: Forbes January 17, 2024 20:58 UTC