The US Treasury’s No. 2 official said a government shutdown would hurt the economy by undermining demand.
(Bloomberg) — The US Treasury’s No. 2 official said a government shutdown would hurt the economy by undermining demand.
While the US economy is performing better than expected, “the last thing we need is the headwind of a government shutdown,” Deputy Secretary Wally Adeyemo said Monday at an event hosted by the Economic Club of New York.
“Lots of people don’t get paid” if there is shutdown, he added.
The House of Representatives returns to work Tuesday with a major fight looming over spending that could lead to a government shutdown beginning Oct. 1.
Adeyemo suggested blame for a shutdown would fall on House Republicans since Democrats and Senate Republicans largely agree on sticking to a spending agreement struck earlier this year that resolved a standoff over the debt ceiling.
He also said a price cap on Russian oil imposed by Group of Seven countries and the European Union is continuing to hold down Moscow’s revenue.
The cap, which prohibits firms based in coalition countries from supporting the shipment of Russian oil, has shown strains of late as spot prices for Urals crude have exceeded the $60 cap.
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