A government shutdown would add body blows to the U.S. economy, a Wall Street analyst told Newsweek, and could tip the country into a recession at a time when policymakers are working to help the world’s largest economy achieve a soft landing amid a period of high inflation and record interest rates.
Speaker Kevin McCarthy has struggled to unite the Republican-led House to move forward on spending bills that will fund the operations of the government beyond the September 30 deadline.
Should Congress fail to reach an agreement, the federal government will shut down and thousands of workers will be forced to stay home. That scenario is looking increasingly likely after McCarthy sent his members home after he failed to get a far-right faction to support another funding vote.
A potential shutdown, plus the autoworkers strike, the resumption of student loan payments and higher energy…
