Economic Forecasts

Expect Aftershocks From the Government Shutdown

The next concern: Economists worry that lawmakers will fail to reach a debt-ceiling deal.

The longest government shutdown in history is now history—but its impact on the economy may linger well into the year.

Consumer confidence is key to a healthy economy because consumer spending accounts for 70% of the U.S. economy. Economists say the shutdown may lead to increased savings and reduced spending among some of the 800,000 federal workers whose paychecks were delayed, as well as the hundreds of thousands of federal contractors and service providers who won’t get back pay. And it may cause others to prepare for a financial shock, too. But the shutdown is unlikely to dampen consumer spending overall, economists say.

There is one silver lining to the shutdown: Democrats and Republicans in Congress have introduced legislation to ban shutdowns.

Most Popular

Where's My Refund? How to Track Your Tax Refund Status
tax refunds

Where's My Refund? How to Track Your Tax Refund Status

If you're waiting for your tax refund, the IRS has an online tool that lets you track the status of your payment.
March 2, 2021
Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer
Coronavirus and Your Money

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer

The IRS has an online tool that lets you track the status of your stimulus checks.
February 19, 2021
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021

Recommended

How to Keep Tabs on Your Credit Report
Coronavirus and Your Money

How to Keep Tabs on Your Credit Report

Free weekly access is ending, but several services let you view your credit files more than once a year.
March 5, 2021
The IRS Can Take Your Recovery Rebate Credit for Child Support or Other Debts Owed
Coronavirus and Your Money

The IRS Can Take Your Recovery Rebate Credit for Child Support or Other Debts Owed

Restrictions put in place to protect your stimulus check from garnishment don't apply to "recovery rebate" tax credits.
January 30, 2021
Refer a Friend to Your Bank or Credit Card—and Reap Rewards
Making Your Money Last

Refer a Friend to Your Bank or Credit Card—and Reap Rewards

Some major card issuers are giving referral bonuses to eligible cardholders.
January 27, 2021
Kids and Money: Boost Your Child's Future Credit Score
Raising Money-Smart Kids

Kids and Money: Boost Your Child's Future Credit Score

Naming your child as an authorized user on your credit card can be a great way to set them up with a healthy credit report.
December 26, 2020