The deadline for the government to raise the debt ceiling has come and gone without any resolution from Congress. However, Americans should have no immediate concerns over a potential government shutdown.
Although the government is forbidden from officially taking on new debt until a resolution is reached, the Trump administration can implement “emergency measures” to keep Washington running in the near term.
Emergency Measures Keep Lights On In Washington
According to Height Capital, the new deadline for investors to watch is April 28. April 28 represents the deadline for the government to pass a new funding bill, and Height analyst Andrew Parmentier believes President Donald Trump and Congressional Republicans will make sure to have a plan in place by that time.
“We suspect Republican leaders know Democrats are trying to goad them into a forced fumble to demonstrate the height of incompetence: failure to carry out the most basic of governmental functions — keeping the lights on — even with one-party control of the Executive and Legislative Branches,” Parmentier explained.
He believes Trump’s aversion to being viewed as a failure means the likelihood of an actual shutdown on April 28 is only around 15 percent.
Trump’s recent budget proposal included severe cuts to EPA, the State Department and the Department of Labor and a $131 billion increase in military-related spending. In the two months since Trump took office, the SPDR S&P 500 ETF Trust SPY is up 4.5 percent.
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