According to the latest report published by Moody’s Investors Service on Tuesday, another US government shutdown could hamper US economic growth, especially it were to happen only three weeks after the end of the longest ever shutdown, Reuters reports.
Key Highlights:
“If another shutdown occurs, there could be a more severe impact on the U.S. economy than during the recently ended shutdown.”
The shutdown’s effects “have been concentrated with limited ramifications for the broader economy.”
Still the shutdown was a “credit negative” on Moody’s top-notch Aaa credit rating on the United States. This caused the rating agency to assess Washington’s budget process as “less robust” than other Aaa-rated countries.
If the government were to shut down again in less than three weeks, it would “complicate negotiations over the debt ceiling,” kindling worries about the Treasury delaying its debt payments.
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