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Another Fed Shutdown Is More Likely Than Not In February, Says Height Securities

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Another Fed Shutdown Is More Likely Than Not In February, Says Height Securities
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After a three-day shutdown, the U.S. government was open for business this week after Congress approved a temporary spending bill. But according to Height Securities, Americans should expect Congress to end up right back where it started in a matter of weeks.

The temporary spending bill did little to remedy the disputes between Democrats and Republicans that caused the recent shutdown in the first place, according to Height. Americans should expect more of the same on Feb. 8, the firm said. 

“As the two sides dig in, it becomes harder to see a path forward to a deal on DACA,” Height said Wednesday. The firm projects a 65-percent chance of another government shutdown. 

Last Friday, Democratic Minority Leader Chuck Schumer reportedly agreed to increase funding for President Donald Trump’s proposed border wall if Republicans would clear a path for DACA recipients.

“That offer is now off the table, and one Democratic aide said Trump ‘missed the opportunity to get the wall,’” Height said. 

Some Americans had high hopes for a deal that was agreed to by a bipartisan group of Senators. But on Tuesday, White House Press Secretary Sarah Huckabee Sanders shot down that plan as “totally unacceptable to the president.”

Fortunately for investors, the market appears to become mostly jaded when it comes to the partisan squabbling in Washington and its potential fallout. The SPDR S&P 500 ETF Trust (NYSE: SPY) was up another 0.3 percent on Wednesday and is now up 6.5 percent year-to-date.

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Posted-In: DACA Height Securities. President Donald Trump shutdownFutures Politics Top Stories Markets General Best of Benzinga

 

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