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

What Are the Income Tax Brackets for 2022 vs. 2021?
tax brackets

What Are the Income Tax Brackets for 2022 vs. 2021?

Depending on your taxable income, you can end up in one of seven different federal income tax brackets – each with its own marginal tax rate.
September 20, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
I’ve Inherited a Lot of Money. Now What?
estate planning

I’ve Inherited a Lot of Money. Now What?

First, put all major decisions on hold. A financial planner can help you come up with a plan that addresses your goals, dreams and needs.
September 25, 2022

Recommended

Kiplinger's Economic Outlooks
Economic Forecasts

Kiplinger's Economic Outlooks

Regularly updated insights on the economy’s next moves.
September 26, 2022
Who leads in which states before election day?
Economic Forecasts

Who leads in which states before election day?

In a tight race, these state elections may make the difference when midterm results are announced in November.
September 22, 2022
What Is an APR?
credit & debt

What Is an APR?

Even for those who pay off their credit card balances every month, knowing your APR is part of keeping good credit habits.
September 21, 2022
What to Do If Your Credit Card Is Closed
Making Your Money Last

What to Do If Your Credit Card Is Closed

The issuer may restore your account with the previous terms, or it may request that you reapply for the card.
September 20, 2022