Treasury Secretary Janet Yellen warned that the shutdown could also delay infrastructure improvements.
“In the immediate term, a government shutdown would reduce gross domestic product by only 0.2 percentage points each week,” said a report released Friday by the Center for Strategic and International Studies, a think tank.
“However, halting critical trade operations for the United States would also undermine the United States’ overall credibility as a commercial partner, hinder ongoing negotiations, and hinder export control enforcement capabilities,” the report said. “
The shadow of the imbroglio continues to loom over Biden’s policy of arming and funding Ukraine in a desperate war against Russian aggression. Blocking aid to Ukraine is a major goal for Republican radicals seeking to derail the new budget.
Most Republican members of Congress continue to support US support for Ukraine, but the shutdown would raise questions about the political feasibility of renewing the flow of at least billions of dollars of aid.