Will the US Government shutdown cause long-term pain for investors?

The US Government shutdown could be a damaging blow to the economy, which was already starting to see warning signs of sluggish growth and metrics going backwards, according to new figures out.

The first US Government shutdown in almost seven years, and the third during a Trump administration, has begun. As a result, investors are flying blind on the economic data front as crucial labour market and inflation releases are not being published, said Candriam, which was just one of many to publish warnings about the shutdown and its consequences.

“The main thing to note is that this particular shutdown is more due to a political impasse as opposed to the debt ceiling,” said Sridhar Manyem, Senior Director, AM Best, to Insurance Investor on what it could mean for insurers, particularly those invested in fixed income. “So, the US Treasury will continue to fulfil its obligations.”

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