Library of Congress post a sign letting people know is closed due the shut down of the government on Saturday, Jan. 20, 2018, at the Capitol in Washington. The federal government shut down at the stroke of midnight Friday, halting all but the most essential operations. (AP Photo/Jose Luis Magana)

Long shutdown could hurt economy, short one just 'a blip'

January 20, 2018 - 2:27 pm

If the government shutdown lasts just days or even a couple of weeks, the robust stock market that President Donald Trump has boasted about probably will emerge unscathed.

But economists say a longer impasse could rattle consumer and investor confidence, pulling stocks lower and dragging down the economy.

Economists and investment advisers interviewed by The Associated Press generally don't foresee the shutdown that began Saturday lasting long enough to stifle the economy much.

With pivotal elections in November, both parties would want to shield voters from any pain. Investors and consumers are feeling optimistic now based on the tax cut signed into law last month, and the economy is strong enough to power through a short shutdown.

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