"Well, they did it. Or rather, they didn't do it. Legislators failed to agree on a continuing resolution to keep the government solvent by the September 30 deadline, and so at midnight last night, the U.S. government "shut down." Social security payments will still be made, but processing of social security applications will slow. At the FDA, review of drug applications will grind to a halt. Government workers, both civilian and military, will go without pay until Washington fixes this mess."
"Essential services, such as air traffic control, will be staffed by workers without pay. Nonessential services will simply not be provided for the time being, because their workers will go on furlough. For example, it's unclear whether this week's expected jobs report will be published - but it is clear that unemployment will rise due to all the government workers no longer working!"
Federal lawmakers failed to pass a continuing resolution before the September 30 deadline, triggering a U.S. government shutdown. Social Security payments will continue, but application processing will slow and FDA drug-review activities will halt. The Congressional Budget Office estimates about 750,000 federal employees will suspend work and go without pay, with essential services like air traffic control staffed without pay and nonessential personnel furloughed. The shutdown creates uncertainty over the publication of economic reports and likely raises unemployment. ADP reported private payrolls fell by 32,000 in September versus expectations of +45,000, and the S&P 500 ETF fell in premarket trading. ConAgra beat Q1 earnings and raised modest guidance.
Read at 24/7 Wall St.
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