U.S. Senate To Vote On Budget Thursday - Forex News by Strategia Forex
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U.S. Senate To Vote On Budget Thursday

Posted Wednesday, January 23, 2019 by
Shain Vernier • 2 min read

The media circus surrounding the U.S. government shutdown has been nothing short of amazing. It seems like every hour new reports addressing the economic impact or political fallout come across the wires. While many of these issues are certainly relevant, it is safe to say that the partial shutdown is being sensationalized exponentially.

McConnell Schedules Dueling Votes In The Senate

If nothing else, the powers that be in Washington D.C. are beginning to feel the heat of the U.S. government shutdown. In an attempt to rectify the situation, Senate Majority leader Mitch McConnell has scheduled two votes in the Senate for Thursday. The action is expected to begin around noon Eastern time, potentially shaking up the forex session.

Dueling proposals from President Trump and the Democratic opposition will be formally addressed. Here are the broad strokes:

Trump: Allocation of $5.7 billion in funds earmarked for national security. More specifically, the construction of a physical barrier at the U.S./Mexico border.
Democrat Opposition: Approval of emergency funding to open the government for a two-week negotiation period.

Neither bill is expected to gain Senatorial approval.

What’s Next?

Border security and immigration reform are the key issues driving the government shutdown. Neither side is interested in caving; Trump is committed to holding out for desired funding and the Democrats have pledged to block his plan at all costs.

Eventually, something will have to give. President Trump has the power to declare a national state of emergency. This is a potential course of action for achieving his objectives on the U.S. southern border. However, the political ramifications of doing so are hard to predict and deter this course of action.

There really isn’t a whole lot that can be done on the Democratic side of the aisle. Obstructing Trump’s agenda is about all that can be accomplished at the present time. For now, this appears to be the Democrats’ plan.

Perhaps the most important aspect of the shutdown is a political one. The markets will survive, as will the U.S. economy and Greenback. However, the divide in Washington D.C. is deep and may not be repaired for a long while. With the 2020 Presidential election rapidly approaching, this is only the beginning of a two-year period of gridlock.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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