Trump and US Congress reach agreement to end government shutdown
Trump and the US Congress compromise to re-open the US government.
US President, Donald Trump, and the US Congress have come to an agreement to re-open the government for three weeks. The two sides have come together to temporarily end the government shutdown.
How did the government shutdown end?
The longest government shutdown in history started when Democrats in Congress voted against funding Trump’s proposed $5 billion US-Mexico border wall. After a month of political gridlock and 800,000 federal workers not being paid, Trump and Congress reached a compromise. The government will be open until February 15. During that time, the two sides will try to come to a resolution on funding border security. Federal workers are also scheduled to receive back pay for the 35 days they worked without a paycheck.
'We really have no choice but to build a powerful wall or steel barrier.If we don’t get a fair deal from Congress the government will either shut down on February 15 again or I will use the powers afforded to me under the laws and the Constitution of the United States to address this emergency,' said Trump.
Senate Minority Leader, Chuck Schumer, hailed the compromise.
‘I genuinely hope that this process can produce something that is good for the country and acceptable to both sides,’ said Schumer.
Schumer also warned that government workers can’t be used for political points.
‘We can never hold American workers hostage again,’ said Schumer.
What’s next for the US government?
While the compromise settles the gridlock for now, in three weeks, there may be the same arguments between Republicans and Democrats. Trump and his supporters assert that a border wall will deter undocumented immigration. Democrats in Congress will still believe that a wall is ineffective and support for the wall is racist towards Mexican and Central American refugees seeking asylum.
Amid all the political turmoil, Wall Street has been mostly steady and recently rose after news of the agreement. Bernard Baumohl, chief global economist at the Economic Outlook Group in Princeton, noted that the compromise is good news for the US stock market, but is still cautious about how the government issues will affect Wall Street.
‘There seems to be light at the end of the tunnel with resolving the government shutdown. But I find it difficult to have much conviction in this market on an upswing when there's so much uncertainty both politically and economically about where this country is headed,’ said Baumohl.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.