Weekly – US: Shutdown looms

by: Peter de Bruin

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The rising risk of a government shutdown is casting a shadow over financial markets. Our base case is that any shutdown would not last long because the event would put a lot of pressure on both parties to find a compromise, which suggests that the effects on the economy would be limited. However, there is obviously a lot of uncertainty about this and a second fiscal deadline – in the shape of the debt ceiling – is approaching.