The U.S. government is once again facing a shutdown crisis. If Congress cannot reach an agreement on a temporary appropriation bill before September 30, the U.S. federal government may shut down from October 1. Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), recently warned that if the U.S. The government shutdown will affect the SEC’s supervision of the market.
(Preliminary summary: The U.S. debt has exceeded 33 trillion, and the federal government is in crisis again. Is the global economy the next unexploded bomb?)
(Background supplement: If the Federal Reserve cuts interest rates, will U.S. stocks soar? Historical lessons tell you the opposite…)
The differences between the two parties in the United States have intensified and they are arguing over budget issues. The 2023 fiscal year is about to end on September 30, but Congress has still not been able to pass the federal government budget for the 2024 fiscal year that took effect on October 1. If it cannot do so in September An agreement was reached on the temporary appropriation bill before the 30th, and the federal government will be shut down starting from October 1st.
According to CNBC reportThe U.S. Congress is currently divided into the Democratic-controlled Senate and the Republican-led House of Representatives. Far-right conservatives led by Republican House Speaker Kevin McCarthy hope to use the government shutdown as a bargaining chip to cut budget expenditures. Many people are preparing to face the continued threat of terrorism. Weeks of government shutdown.
If the federal government shuts down, the operations of many government departments will cease, and millions of federal workers will face delayed salary payments. Many of the approximately 2 million military personnel and more than 2 million civilian personnel in the United States are expected to be affected.
Democratic Senate Majority Leader Chuck Schumer hasarrangeA vote on a temporary funding bill next Tuesday could give McCarthy the option to send it directly to the House for a vote if it passes, but that could anger the right wing of the party and cause greater chaos.
SEC regulatory capabilities will be affected
In an exclusive interview with Bloomberg on the 21st, U.S. Securities and Exchange Commission (SEC) Chairman Gary Genslerwarnif the federal government shuts down, the SEC’s ability to regulate the market will be severely limited:
The public should understand that[in the event of a government shutdown]we will largely be operating with a skeleton crew…our normal oversight of the market will not be possible.
For the SEC, the government shutdown will have a major impact. Gary Gensler mentioned that the SEC may not be able to review the filing documents of companies that want to be listed. If a major incident occurs, the SEC will not be able to fully supervise the market. Despite this, he still downplayed the The federal government shutdown will cause major market disruptions:
The Treasury market will still function and the stock market will continue to trade, but without the oversight of market regulators.
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2023-09-24 11:32:06
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