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Prolonged shutdown could push US economy over the edge
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Asia Times
That’s because the economy is already in a precarious state, with the labor market struggling, consumers losing confidence and uncertainty mounting.
Let me explain how a prolonged shutdown could affect the economy – and why it could be a tipping point to recession.
US economy is already in distressThis is all occurring as the US labor market is flashing warnings.
Fed Chair Jerome Powell refers to this as a “curious kind of balance” in the labor market.
This raises the risk of reigniting inflation, but the cooling labor market is a more immediate concern for the Fed.