The closure of the US Government it weighs on the markets and continues without agreement in sight

The closure of the US Government it weighs on the markets and continues without agreement in sight



The partial closure of the United States Government reached its fourth consecutive day today after having caused sharp declines in the markets and without an agreement in sight on the funds that President Donald Trump is claiming for his wall with Mexico.

The US Senate, which in this case leads the budget, will meet tomorrow at 4:00 pm (2100 GMT) to try to reopen the Administration, but neither the White House nor the Democratic opposition are willing to cede, so the blockade could continue until January 2019.

"I can not tell you when the government is going to reopen," Trump acknowledged today in statements to the press at the White House.

"No (reopens) until we have a wall, a fence, whatever you want to call it, I'll call it whatever they want, but it's all the same thing, it's a barrier against people coming to our country, it's a barrier against drugs. There is a problem called trafficking in people, we are not going to let that happen, "he said.

Trump again insisted that Congress should include $ 5 billion in the budget for the wall; But the Democrats continue to refuse to give in and, for the moment, they are only willing to allocate 1,300 million to border security, although with restrictions that prevent the construction of the barrier.

In addition, the president said that in January he will visit some sections of the border fence that separates the US. and Mexico and that were built before he came to power.

In a statement, the leader of the Democratic minority in the Senate, Chuck Schumer, and the leader in the House of Representatives, Nancy Pelosi, affirmed on Monday that the agreement is difficult because the White House does not have a unified position and, each official , offers a different vision of what Trump might come to accept.

Also, the Democrats have accused the president of being "plunging the country into chaos" due to his attacks on the Federal Reserve (Fed), the recent resignation of General James Mattis as secretary of Defense and the closure of the Administration, which began at midnight from Friday to Saturday.

The New York parquet does not operate today because it is Christmas; But the Tokyo and Shanghai exchanges suffered the impact of the collapse of all Wall Street indicators on Monday.

The Dow Jones Industrials, the main indicator of Wall Street fell more than 650 points on Monday; while the S & P 500, the index that groups the largest companies listed in the US, fell for the fourth consecutive session, the worst Christmas Eve in history.

According to analysts, the stock markets reacted badly to the conversations held this weekend by Treasury Secretary Steven Mnuchin with the directors of the six main banks in the country, including Bank of America, Citigroup and JPMorgan Chase.

According to a Treasury statement, all managers agreed that they have "ample liquidity available to make loans to consumers, financial markets, and other market operations."

That information, according to economic expert Neil Irwin, "caused more damage than he intended to prevent" because, suddenly, investors began to wonder if they should worry about the liquidity of the banks, something they had not questioned until then.

The owner of the Treasury sought to reassure the markets, but got the opposite effect.

Nor did it help that, in the middle of the trading day, Trump lashed out against the Fed, which he considered the "only problem" of the US economy.

The president believes that the gradual monetary adjustment advocated by the Fed threatens the acceleration of the US economy and has not hesitated to criticize the agency, breaking with the traditional respect that the White House has expressed for the independence of the central bank.

In fact, Trump again insisted today that the Fed "is raising interest rates too fast."

According to local media, Trump is angry about the interest rate hike decreed by the Fed last week and has come to value the possibility of dismissing the president of the institution, Jerome Powell; although Mnuchin assured this weekend that Powell will continue in his position.

Despite the stock market crashes, the US economy lives a good time with an unemployment rate of 3.7%, at lows of almost half a century, and inflation close to the annual goal of 2%.

Beatriz Pascual Macías

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