Pig Capitalist hedge fund manager Jonathan Honig reacts to a market sell-off after the Fed predicted a rate cut in 2025 at the Big Money Show.
home GOP leaders are scrambling to reach a deal to avert a partial government shutdown before Friday's deadline, but experts say the shutdown is likely to have little impact on the stock market — and may even help it, given the circumstances.
The last-minute fight comes after an initial bipartisan deal faced an avalanche of criticism from conservatives amid pressure from both sides. Trump administration To curb government spending
Stocks jumped Thursday afternoon as investors weighed the anti-Fed outlook and a potential government shutdown. (Brendan McDermid/Reuters Photo)
“A government shutdown won't cause a nuclear meltdown in the markets, but it will create short-term volatility — but only for a few trading sessions because investors believe Trump is president,” said Eric Schaeffer, an investor and financial expert and president of the Patriarch Organization. He will use his mandate to approve it.”
Ted Jenkin, co-founder of oXYGen Financial, dismissed concerns that the shutdown could have a major impact on markets. FOX Business“If there's a silver lining to the growing fiscal dysfunction on Capitol Hill, it's that we have enough history to show that a government shutdown has minimal impact on investors or financial markets.”
Here's what's in the spending bill that drew the ire of Elon Musk, Vivek Ramaswamy.
Chris Markowski, founder of Markowski Investments, said in an interview that depending on how long the shutdown lasts, markets may be affected by the shutdown. But in general, concerns about shutdowns are often overblown.
Fox News Senior Congressional Correspondent Chad Pergram reports on the latest news from Congress as lawmakers try to avert a government shutdown.
“I think what's happened in the last couple of days is kind of extraordinary, in terms of a lot of people pouring into the phone banks in D.C. to basically say enough is enough,” Markowski told FOX Business. We did not vote for this.
Markowsky said shutdown scares happen right around Christmas every year, and he argued that every other year, lawmakers would already be home for the holidays. But this year, “you actually have to get the taxpayers to back off.”
Markowski believes that investors may be encouraged by the shutdown because of the prospect that the government could eventually cut spending, which would eventually lead to Stronger markets.
Republicans in the GOP-led House of Representatives are trying to hammer out a last-minute deal to avert a government shutdown after bipartisan rules were repealed following conservative opposition to the spending bill. (Julia Nickinson/via Bloomberg/Getty Images)
He pointed to the fact that one of the largest items in the federal budget is interest on the national debt, which now exceeds $36 trillion.
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“You can't run a family like that. You can't run a business like that,” he said.
“Honestly, like most taxpayers, I'm sick and tired,” Markowski said. It's not so much about paying our taxes – which we have to – but the fact that they're just regularly wasted.