Obama warns on budget shutdown

marketsforu

President Obama warned Republicans in Congress on Wednesday that current deadlock in negotiations over the federal budget for upcoming year (starting October 1st) may lead to repetition of the shutdown the world observed in 2013.


Congress has only 2 week left to vote the budget. If parliamentarians do not reach a consensus, it may lead to paralysis of federal institutions and cost billions of dollars
Obama said in an interview.


Indeed, such situation would be very problematic to the US Treasury as the Federal Reserve is most probably planning to raise interest rates at the end of this year, which in face of a theoretical shutdown could contribute to increased volatility on the American bond market.