John Boehner’s decision to relinquish his House leadership post inadvertently complicates things for the Federal Reserve.
The impact over the Boehner move involves a subplot regarding a potential government shutdown.
In short, his decision decreases the chance for an October shutdown but increases the odds of a December close, making it more difficult for the Fed to enact a long-awaited interest-rate hike.
“This improves the chances that there will be no shutdown next week,” said Greg Valliere, chief political strategist at Potomac Research Group in Washington, D.C. “However, I think the chances of a really serious crisis in mid-December have gone up quite a bit.”
Democrats and Republicans once again are squaring off over the future of national fiscal policy, with the GOP clamoring for spending cuts and the end of subsidies for Planned Parenthood, both of which have met stiff resistance on the other side of the aisle.
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