Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By The Daily Sheeple
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Government Shutdown Odds Rise to 40% According to Deutsche Bank

% of readers think this story is Fact. Add your two cents.


With rumblings growing about a possible Washington shutdown on April 28 when the current continuing resolution expires, Deutsche Bank’s Washington expert Frank Kelly yesterday hosted a client call on the political implications of last week’s events.

He suggested that the surprise withdrawal of the Republican healthcare bill on Friday is a sign of the continued division within the Republican Party and is perhaps a precursor to growing political and policy risks in the US, and as discussed yesterday, he notes that even before considering the difficulties involved in passing President Trump’s tax reforms, there exists a very real possibility of a government shutdown on April 28 when the current continuing resolutions set to expire.

According to Kelly, there is a significant chance that the Freedom Caucus will reject a new continuing resolution due to their opposition to the continued funding of Planned Parenthood and Obamacare, while Trump’s spending plans for a border wall will see opposition from both Democrats and Republicans in the Senate.

As a result, Frank estimates the probability of a government shutdown at roughly 40% and notes that the next 2 weeks will be critical to watch.

Beyond the risks of a government shutdown, policy uncertainty continues to manifest itself in the form of questions surrounding Trump’s tax reform bill: Frank expects that the controversial Border Adjustment Tax (BAT) will not even make it into the final bill (at least not in its current form) and that the new corporate tax rate will likely be closer to 25% rather than the expected 15-20% range. Also despite the failure of the healthcare bill there is unlikely to be any acceleration in the proceedings on tax reform to fill the gap. The bill remains likely to go to Congress sometime in the first two weeks of  May, and will likely only be picked up by the Senate in September.

Given these developing uncertainties, Frank suggests that markets should downgrade their expectations of progress going forward.

Meanwhile, in its latest morning note JPM takes the opposite view and writes that the risks of a shutdown are falling as Republicans will propose a bill void of some of the more controversial spending proposals, and it sounds like the GOP could be moving towards a “small” tax bill (note that Gary Cohn is expected to brief Trump on tax options this Thurs 3/30). As a result, and unlike DB’s recommendation to trim optimism, JPM suggests that “the broader domestic equity macro backdrop remains the same as before.”

Delivered by The Daily Sheeple

We encourage you to share and republish our reports, analyses, breaking news and videos (Click for details).


Contributed by Zero Hedge of www.zerohedge.com.



Source: http://www.thedailysheeple.com/government-shutdown-odds-rise-to-40-according-to-deutsche-bank_032017


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.