Digital Access

Digital Access
Access saukvalley.com and all Shaw Media Illinois content from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more! News you use every day! Daily, Daily including the e-Edition or e-Edition only.

Text Alerts

Text Alerts
Choose your news! Select the text alerts you want to receive: breaking news, prep sports scores, school closings, weather, and more. Text alerts are a free service from SaukValley.com, but text rates may apply.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Sign up for free e-newsletters today.
Nation & World

Fed Chair Jerome Powell warns an extended shutdown could damage the economy

WASHINGTON – Federal Reserve Chairman Jerome H. Powell warned on Thursday that an extended partial government shutdown could damage the U.S. economy and starve the central bank of key data it needs to make monetary policy decisions.

“If we have an extended shutdown, I do think that would show up in the data pretty clearly,” Powell said during an appearance at the Economic Club of Washington.

About one-quarter of the federal government has been shut down since Dec. 22 because of a dispute over $5.7 billion in funding President Trump is seeking from Congress to build a wall on the U.S. border with Mexico.

The dispute is showing no signs of ending after Trump walked out of a Wednesday negotiating session with lawmakers after Democratic leaders would not agree to his demand for the wall funding.

Powell said past government shutdowns had not caused serious economic damage because they didn’t last long.

“If government shutdowns don’t last very long, they have typically not left much of a mark on the economy,” he said. “There’s plenty of personal hardship that people undergo, but the aggregate level of the economy generally doesn’t reflect much damage.”

About 800,000 federal workers are affected by the shutdown, and many will miss their first paychecks today.

But a longer shutdown would start to cause damage to the economy. Mark Zandi, chief economist at Moody’s Analytics, has predicted that a partial shutdown that lasts through the end of this month would shave from one-tenth to two-tenths of a percentage point from total first-quarter economic growth.

One of the agencies shut down is the Commerce Department, which produces some important economic reports. The shutdown already has delayed the release of the monthly foreign trade statistics, which were due out on Tuesday.

Loading more