In the face of a potential U.S. government shutdown, financial experts from Wall Street and within the Biden administration asserted an immediate recession was unlikely. They do caution this risk could grow if the shutdown is prolonged.
What Happened: As stated in a recent New York Times article, economists concluded from past experiences that short-term shutdowns typically had a minor effect on the economy. Yet, if shutdowns were extended, they could detrimentally impact economic growth and possibly influence President Joe Biden’s reelection chances.
