Congress Votes To End Shutdown

23 Jan 2018

Published in: The Chamber Patron Group

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The pound continued its bullish run on Monday but was held back by the release of the UK's latest Household Finance Index. The index which is published by the HIS and is a measure of financial wellbeing fell to a four month low of 43.0 in December down from 43.7 the previous month. In particular, household expectations about future inflation hit a four-year high and the report also showed that they have become more dependent on borrowing. This is in dispute with the Bank of England's forecasts which predict that the squeeze on households will ease off in 2018 as inflation cools and weak wage growth weighs in on consumer spending.

Nonetheless, the survey reported robust workplace activity at the start of 2018 coupled with a rise in day-to day spending which is expected to feed into the economy in the coming months.

Congress yesterday voted to end a three-day US government shutdown approving the latest short-term funding bill after the fourth temporary funding bill since October easily passed the Senate and the House of Representatives. The measure which is largely a product of negotiations among Senate leaders was later enacted by President Trump. That allowed the government to open fully on Tuesday up until February 8 when Republican-led Congress will have to revisit budget and immigration legislation, two disparate issues that have become closely linked.

The funding bill passed the senate by a vote of 81-18 and before gaining approval from House by a vote of 266-150.

In a statement Trump said, "I am pleased that Democrats in Congress have come to their senses". He added, "We will make a long term deal on immigration if and only if it's good for the country."

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