The government has 48 hours to reach a spending agreement before facing a potential shutdown. Stifel Chief Washington Policy Strategist Brian Gardner joins Catalysts to explain why investors should remain calm despite the looming deadline.
While acknowledging the current "dysfunction" and "disagreement" in Washington, including the collapse of a previous deal, Gardner maintains that "the odds of a shutdown are still relatively low." He predicts the government will implement a series of short-term extensions to bridge into early 2025.
"Going into the holidays, nobody wants the optics of shutting down the government," Gardner explains, noting that scenarios like unpaid military personnel would create "a very bad optic for Washington."
"They'll just keep kicking the can down the road until they eventually get to a deal that lasts a longer period of time," he tells Yahoo Finance.
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This post was written by Angel Smith