Budgetary situation and public debt has caused concern in the financial markets
The President’s threat of a trump to prevent a partial government shutdown to get the money to build a wall on the border with Mexico, has caused concern in the financial markets and cast a shadow over attempts by Congress to raise the debt ceiling and adopt a budget bill.
According to analysts on wall street, after returning from vacation, the Congress will have just 12 days to raise the debt ceiling before the Federal Treasury will have exhausted the last resort to maintain fiscal solvency for all liabilities of the Federal government.
In the face of such prospects and on the background of statements of trump, he may allow a government shutdown if Congress does not agree to allocate money for the construction of the wall, the U.S. securities and the dollar has weakened and investors turned to safer Treasury securities.
The Dow Jones Industrial Average index lost around 0.3 percent, the S&P 500 0.25% and Nasdaq Composite index – 0.32 percent. S&P moreover, again fell below kept for the 50-day average, which he kept after the fall on August 10.
Credit rating Agency Fitch said on Wednesday that if the debt ceiling is not promptly raised, it will review the credit rating of the United States.
The promise to build a wall to deter illegal immigration has become one of the key elements of the campaign trump, however, while this idea does not take root in Congress, as many lawmakers doubt the necessity of such a step.
“Even if we have to close the government, we’ll build this wall, – said trump at a meeting with voters in Phoenix. – We will have a wall. The American people voted to limit immigration. We will have this wall.”
Raising the debt ceiling will be one of the first items on the agenda when lawmakers return from vacation next month.