The US government suspended work for the second time in a year
The US government is forced to suspend its work. Congress hasn’t been able to pass a law on the extension of funding. The reason was disagreements about budget, despite the fact that the Republicans and Democrats agreed yesterday.
It became clear during the voting that not all representatives of the Senate support the initiative to increase public spending by $ 300 billion over the next two years. Moreover, many adherents of the proposed bill changed their mind after Senator Rand Paul's speech. He said that increasing by another $ 300 billion in the already huge budget deficit is "looting the treasury."
Today, the Senate and the House of Representatives are planning to re-vote on the budget. Perhaps the work of the US government will be resumed tomorrow morning. Nevertheless, the second blocking of the work of federal structures for a year caused the US dollar to stop the upward movement in the main currency pairs. It provoked positive data from the labor market. According to the yesterday report, the number of initial applications for unemployment benefits in January fell to 221 thousand, although it was expected to increase to 236 thousand.
Nevertheless, US dollar is saved by the growth in the yield of US Treasury bonds. They approached the maximum value for 4 years against the backdrop of another stock market fall.