Trump Says “If There’s Going to Be a Government Shutdown,” It’s Better to Happen “Now”

The U.S. House of Representatives rejected a plan proposed by President-elect Donald Trump on Thursday that would have extended the federal government’s funding capacity until mid-March.

Trump, who has stated that “if there’s going to be a government shutdown,” it’s better to happen “now,” believes it should occur before he takes office on January 20, with Joe Biden, the Democratic president-elect, still in charge of the White House. Trump argued that Biden should “solve” the issue, though he also suggested that Republicans are willing to “help.”

The U.S. House voted against Trump’s proposal, which included a suspension of the debt ceiling for two years. This came after Trump and billionaire Elon Musk criticized the previous deal reached between Republicans and Democrats.

Musk, speaking on his social media platform X (formerly Twitter), urged that “the government should pass sensible laws that serve the people, or shut down,” reflecting his frustration with the bipartisanship that has recently unraveled.

The deadline for a deal is Friday midnight, and media outlets such as Fox News and NBC News are already discussing a third proposal, with the possibility of voting on different measures separately.

PCE Inflation Data

In other relevant news of the day, U.S. inflation rose again in November, reaching 2.4% year-over-year, compared to 2.3% in October, according to the PCE index released by the Commerce Department on Friday. This is the Federal Reserve’s preferred measure for shaping its monetary policy.

However, the monthly index for November increased by just 0.1%, down from the 0.2% growth seen in the previous two months.

The PCE index came in slightly below analysts’ expectations, who had anticipated stable monthly inflation, according to the consensus gathered by Briefing.com.

The PCE index mirrored the direction of another inflation measure, the CPI index, which is linked to pensions. The CPI also rose in October, reaching 2.7% year-over-year, up from 2.6% in the prior month.

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Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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