US shutdown stops investments
Reported difficulties in passing mortgage loans is an early example of how the Trump shutdown of federal functions could impact growth negatively.
If the current partly closure of federal administration, implemented by the White House after a political deadlock, could well hamper the economy’s rate of expansion. This is noted in a Wall Street Journal article on Monday, although it adds that the effects are not yet widespread.
Late last week, hundreds of thousands of federal workers missed out on their first payday of the closure. There are now signs that the shutdown is impacting commerce, and the Wall Street Journal lists a number of examples from small businesses including a brewery, a burger joint and a cab driver.
News site CNBC quotes a report from real estate firm Zillow, estimating that nearly 40 000 mortgages could be caught up for people planning to buy houses. And over 20 percent of realtors said they had current or prospective clients impacted, according to a survey by the National Association of Realtors.
The indirect business effects come on top of direct effects curtailing infrastructure projects, food-processing inspections and economic data used by Wall Street, writes the Wall Street Journal. The partial federal government shutdown became history’s longest on Sunday.
However, earlier fears that the closures would delay tax refunds were calmed by statements from the White House last week.