The US dollar is unchanged this morning after the U.S. government has finally reopened following the longest shut down in history. Trump signed a deal that will keep the government funded until February 15th, despite there being no funding for his promised border wall. During the stalemate, Trump’s popularity sunk to an all-time low last week when his commerce secretary, Wilber Ross, suggested that unpaid federal workers should tide themselves over with loans and couldn’t understand why they were using food banks. 800k federal employees had lost out on pay during the shutdown.
The Chairman of the Council of Economic Advisers, Kevin Hassett, recently said the shutdown reduces quarterly annualized economic growth by 0.13 percentage points for every week that it lasts. After more than four weeks, that’s the equivalent of a 0.6 percent reduction in the annualized growth rate, the Center for a Responsible Federal Budget noted.
To add more drama, President Trump said yesterday that he doesn’t believe congressional negotiators will strike a deal over border-wall funding that he could accept and vowed that he would build a wall anyway, using emergency powers if need be.