The US dollar is unchanged this morning after the U.S. government reopened after the longest shut down in US history. President Donald Trump signed a deal that will keep the government funded until February 15, 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 Commerce Secretary Wilber Ross said that unpaid federal workers should tide themselves over with loans and couldn’t understand why they were using food banks. Eight hundred thousand federal employees did not receive paychecks during the shutdown.
The Chairman of the Council of Economic Advisers, Kevin Hassett recently said the the shutdown could reduce 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. He vowed that he would build a wall anyway, using emergency powers if need be.