Trump one at "shutdown" complicate plans to get Congress to increase the debt ceiling

President of the United States Donald

Trump relevant without the construction of the border wall funding in October, the Government closed the threat may complicate the work of Congress to raise the debt ceiling. Congress needs before September 30 to pass a spending bill to keep the Government running, and this is also the deadline for raising the debt ceiling.



Republican leaders there is no how to advance the plan, but a likely scenario would be the two legislative projects together, and the President signed.

Trump lockout threat may be just part of the bluff when he talks, but if he really decides to follow through, then the potential showdown could still trigger market volatility. Trump has been clear for months, he expressed dissatisfaction with the May final spending agreement reached by the two parties, because he did not obtain funds from building to the South of the border wall.

Building wall is the key to his campaign promises. President for $1.6 billion for the construction of the border wall, but Democrats widely rejected. Although the House of representatives passed a package of spending bills, including building walls of funds, but did not get through the Senate the required support from 60 senators.

Now, the President has indicated that he will veto the spending bill that contains no funds built wall.

"The construction of the wall" "Even if we have to shut down the Government, and we had to fix the wall," trump said in a rally speech in Phoenix on Tuesday, "no matter what, we all want to build the wall.

" After Trump threatened and poor's 500-stock index and the Dow Jones industrial average on Wednesday fell, while gold futures climbed.

Brown Brothers Harriman & Co. global head of FX Strategy at Marc Chandler said in a report on Wednesday, Trump speaks of "disturbing".

"A Government shutdown is not unprecedented in the United States, and are normally only has a mild destructive," he wrote, "they are bad for the investment climate." He added that any contact with the debt limit is raising the stakes. He said: "political manipulation can lead to shut down the Government, but the missed bond payment is far more serious incident, both sides seem to not want to adventure on this matter. "

Congressional aides and Republicans outside the Administration worry that Trump might not hesitate to veto September spending bill, Congressional leaders worry the fighting could threaten the broader agenda of the Trump, including tax reform.

Trump issued threats before Tuesday night, Goldman Sachs has warned customers, the Government has 50% the possibility of closing. Top Senate Budget Committee Republican Pete Domenici, said Steve Bell, head of the General staff, "shut down the Government for construction of the wall of capital, be welcomed by the President of basic support groups, so it's hard to imagine he would flinch." "I believe that the Government shutdown seems inevitable. "

Debt limit

Because this fall to raise the debt ceiling, so that the battle of the border wall will have more serious consequences than usual. Republican conservatives are pushing for deep cuts in welfare and debt-ceiling hooks, and the moderates of the party did not intend to vote in support of the plan. This means that Republicans may want to contact the Democratic Party members to organize the bipartisan vote, which has refused to give conditions attached to any debt-ceiling Bill practices.

This could prompt the Republican leadership decided that the best way to raise the debt ceiling is bundled with the must-pass spending bill.

If the two are bundled together, Trump's veto threat will become more serious, may shut down October 1 local government and shortly thereafter a debt default. Bell said that, given the position of Donald Trump, the Senate may choose different paths for the debt ceiling.