A prolonged government shutdown could have a negative impact on the U.S. economy, Federal Reserve Chairman Jerome Powell said Thursday.
“In the short term, government shutdowns don’t last very long. They typically have not left much a market on the economy, which isn’t to say, there’s plenty of personal hardships that people undergo,” Powell said during a discussion Thursday at the Economic Club of Washington, D.C.
“A longer shutdown is something we haven’t had,” he added. If we have an extended shutdown, I do think that would show up in the data pretty clear.”
The federal government has come to a near-standstill 20 days ago due to a battle between President Donald Trump and congressional Democrats over funding for a wall at the southern border. Neither side has been willing to budge on the core issue, and workers could be about to miss their first paycheck because of the standoff.
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