Instability in Washington causes uncertainty on Wall Street
Senate Minority Leader Mitch McConnell (R-KY) (C) arrives at the U.S. Capitol October 15, 2013 in Washington, DC. The U.S. government shutdown is entering its fifteenth day as the U.S. Senate and House of Representatives remain gridlocked on funding the federal government.
Senate leaders say they're close to a deal that would re-open the government and raise the debt ceiling. But there's still some horse trading going on. Some of it does involve nips and tucks to President Obama's health care reform law. And there's a developing scenario where the Senate would agree to lift the federal limit on borrowing until early next year. One Republican lawmaker says the House would accept the Senate time frame.
But if revisiting the debt ceiling soon is a component of the resolution, what does that mean to the economy? Juli Niemann, analyst at Smith Moore and Company in St. Louis, says all the squabling on Capitol Hill is making consumers and business owners hesistant to spend -- and that could cause recession-like circumstances.