US govt shutdown 'unnecessary risk' to economy, says Lael Brainard

White House Economic Advisor Lael Brainard said on Friday that a government shutdown that could start this weekend was an “unnecessary risk” to a resilient economy now with moderating inflation.
 

Brainard told CNBC that avoiding a lapse in government funding was “completely in the hands of the House (of Represe­ntatives), the House Republi­cans in particular”, and that risks to the economy include active military service mem­bers going without pay, air traffic delays and poor Americans being unable to access government benefits.
 

Brainard said that US Commerce Department data showing underlying annualised inflation excluding food and energy fell below 4 per cent for the first time in more than two years in August was “absolutely good news” for the economy.
 

 

“The main story of all the naysayers was that you couldn't get core inflation to come down without a big increase in job destruction. That is not what we've seen,” Brainard said.  He said a shutdown would take a toll on workers to provide essential services to the people without pay.