News / Economy

Economic Uncertainty Lingers Despite US Budget Deal

Economic Uncertainty Lingers Despite US Budget Deali
X
October 18, 2013 10:00 AM
In New York, investors mostly cheered the last minute U.S. budget agreement that averted a possible default on the national debt, but some economists remain concerned about the country's long-term fiscal health; the long political impasse may have shaken consumer and investor confidence and the deal only postpones legislative action to reduce the national debt. Brian Padden reports.
Brian Padden
In New York, investors mostly cheered the last minute U.S. budget agreement that averted a possible default on the national debt, but some economists remain concerned about the country's long-term fiscal health; the long political impasse may have shaken consumer and investor confidence and the deal only postpones legislative action to reduce the national debt.
 
This ongoing uncertainty hurts businesses like Studley Incorporated, a commercial real estate firm that manages some well-known properties, including the Time Warner Center in New York City. Heidi Learner, chief economist at Studley, said their clients and the markets need consistent economic polices in place to invest in long-term projects.
 
“I think that is what the markets are craving, is that long-term stability and the certainty that comes with knowing we have a budget, at least through the current fiscal year, that allows us to know that the Treasury isn't going to be facing a debt ceiling say every three or four months,” said Learner.
 
John Glynn, managing director of the investment brokerage firm Drexel Hamilton, claims the unresolved budget battles could reduce consumer confidence, which would affect the automotive industry and retailers.
 
“I think people are going to be a little reluctant because they have just gone through something, they think they might have to go through it again in three months, and they might be a little bit cautious with their spending,” said Glynn.
 
Harry Smith, Senior Vice President at Drexel Hamilton, pointed out that a lack of confidence in government and slow economic growth could also mean fewer jobs in the near future.
 
“The factors that we can’t quantify, like employee attitudes or employer attitudes, looking forward do they really want to hire, do they really want to add people to staff when we are not really sure where we stand with the government because we are going to be in this situation in three and one half months,” said Smith.
 
While the budget deal averted some immediate economic problems, it is not enough to put the country on a path to long-term robust economic growth.

You May Like

Kurdish Party Pushes Political Gamble to Run in Turkey Poll

HDP announces it will run as political party instead of fielding independent candidates in June election, but faces tough 10 percent threshold More

Twitter Targets Islamic State

New research shows suspending Twitter accounts of Islamic State, its supporters has been effective; group, its backers are facing 'significant pressure,' says terrorism expert More

Video Former Sudan 'Lost Boy' Becomes Chess Master in NYC

Majur Juac made the leap from being a refugee in Africa to a master chess champion in US, where he shares his expertise with students More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long distance communication contains mostly sounds and pictures. For now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8815
JPY
USD
117.85
GBP
USD
0.6581
CAD
USD
1.2420
INR
USD
61.404

Rates may not be current.