The U.S. government’s partial shutdown might be enough to tip America’s economy into recession if it runs longer than another month, a former White House aide said on Thursday.
SkyBridge founder and co-managing partner Anthony Scaramucci, who was the president’s communications chief for 10 days in 2017, said in an interview in the Reuters Global Markets Forum that the disruption now in its 34th day, also weighed on the president’s prospects for re-election in two years.
Economist at J.P. Morgan on Thursday reduced their estimate of first quarter U.S. economic growth to 1.75 percent from 2 percent because of the shutdown.
The following are excerpts from the LiveChat at the World Economic Forum in Davos with Scaramucci:
Question: Do you see economic fallout from the shutdown. Is it enough to push the U.S. economy into recession?
Answer: (The government disruption) will lead to slower growth this year globally. It is not significant enough but, if it lasts longer than another month, it will be.
Q: If the dispute between the Democrats and the president is resolved soon, what are your expectations for the U.S. economy?
A: Low risk of recession (during) 2019, but goes up in mid-2020.
Q: Are you making any changes in your portfolios at Skybridge because of the prospects of recession?
A: No change to our portfolio.
Q: Politically speaking, is the shutdown a political plus or minus for the president?
A: A-minus … They are in a Gordian knot with both sides having no face-saving way out.
Q: What are the odds of the president being re-elected?
A: 60/40. 60 to get re-elected.
Q: Do you have any contact with the president these days? Do you have any informal role?
A: Speak to him once a month. No formal role.
Reporting by Michael Connor in New York, Divya Chowdhury in Davos and Parikshit Mishra in Bengaluru; Editing by Alistair Bell
Senate Dems blast ‘corrupt’ nomination of Amy Coney Barrett: ‘This entire process is illegitimate’
President Donald Trump on Saturday nominated Judge Amy Coney Barrett to replace Justice Ruth Bader Ginsburg on the United States Supreme Court -- and Democrats were livid.
Senate Minority Leader Chuck Schumer (D-NY) linked the nomination to the Affordable Care Act and the COVID-19 pandemic.
"A vote for Judge Amy Coney Barrett is a vote to eliminate health care for millions in the middle of a pandemic," Schumer wrote. "Democrats are fighting for Americans' health care."
Sen. Dianne Feinstein (D-CA), the ranking member on the Senate Judiciary Committee, ripped the nomination for coming so close to the election.
Senate Republicans attempt to brand Amy Coney Barrett as the ‘Notorious ACB’
The campaign arm for Senate Republicans is raising money by attempting to brand conservative judge Amy Coney Barrett as the "Notorious A.C.B."
The scheme is an attempt appropriate Ruth Bader Ginsburg's famous nickname -- The Notorious R.B.G. -- for a jurist nothing like the late Supreme Court justice.
T-shirts with "Notorious A.C.B." are being given out for donations between $25 and $5,000 to the National Republican Senatorial Committee.
The website where the T-shirts are sold says the money will go to the "Supreme Court Defense Fund."
"Democrats will do ANYTHING to stop President Trump and Senate Republicans from filling the Supreme Court vacancy," the website argues. "Protecting our Majority has never been more important. HELP!"
Joe Biden responds to Trump picking Amy Coney Barrett for the US Supreme Court
Democratic 2020 nominee Joe Biden released a statement shortly after President Donald Trump nominated Judge Amy Coney Barrett for the United States Supreme Court.
"Election Day is just weeks away, and millions of Americans are already voting because the stakes in this election could not be higher. They feel the urgency of this choice – an urgency made all the more acute by what’s at stake at the U.S. Supreme Court," Biden wrote.
"They are voting because their health care hangs in the balance. They are voting because they worry about losing their right to vote or being expelled from the only country they have ever known. They are voting right now because they fear losing their collective bargaining rights. They are voting to demand that equal justice be guaranteed for all. They are voting because they don’t want Roe v. Wade, which has been the law of the land for nearly half a century, to be overturned," he explained.