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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets