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KBW Senior Vice President of Washington Research Brian Gardner on whether the government will effectively shut down on March 27.
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From one crisis to the next you could say the government failing to strike a deal to avoid sequestration.
But will congress be able to come to a budget agreement before the government essentially shut down march 27.
Joining me now is Brian -- senior vice president question research for -- W Brian welcome.
Thanks our house Republicans -- you know expected to introduce a bill day a day keeps spending to a level that it has it has said he could agreed to seal.
But can this next round of negotiations really be that simple.
-- -- -- I'm -- -- can never be that simple in Washington but I think coming out of the the fiscal cliff debacle.
I think there is just an.
Two crisis management I think.
Both sides wanted to avoid that this time around.
Some actually thinking that yes they are going to avoid a government shut down and a couple weeks and then I expect the continuing resolution to be.
To be extended through the rest of the fiscal year when we get Iran doesn't on the next two weeks.
Now what would that look like if you believe that Republicans in the sequestration negotiation -- leading up to it blocks of negotiating clout or in other words that.
Democrats scare tactics.
Were effective.
While I don't think there have been that effective I don't think guy I I I disagree -- with the premise that Republicans have lost a lot here.
And actually -- I think you're starting to see some signs that the administration is willing to agree to weigh a CR for the rest a year.
That includes sequestration it doesn't -- it and that's why I'm optimistic.
That we're heading towards a deal some -- in the next two weeks.
So simply asked Republicans will be able to stick to their guns and not have to swallow any additional tax hikes.
In any -- I want.
Yeah I -- there is gone there will be no revenue increases seen on -- you know outside some kind of user fee that that I I don't anticipate is it is a big deal.
But -- in terms of closing loopholes raising rates that is not going to be part of the CR com.
I don't think anybody really wants that fight right now lot.
People continue to posture over it but it's not going to get in the way of a of a budget deal through direct a spending deal through the rest of the year with sequestration in place remaining in place for the rest of the year.
You know speaking of sequestration we've had a couple of days to -- it -- The homeland chief Kenneth -- kind of talk about long waits and obviously that was -- balance some conflicting reports so far the impact that's far of these did of these cuts.
What do you make of that house assault and I fault is it really gonna be less noticeable.
Less terrible.
And we're hoping.
By.
Now I I -- I don't think -- -- -- I should say I don't think it will bomb Armageddon is on its way I think that the federal government which.
Whose budget is three point six trillion dollars.
That -- 44 billion dollars less spending through the rest the year is not going to make a significant change.
There -- you will hear isolated stories of problems from Reno in a particular program.
Funding issues personnel issues but it's such a small sites the slice right overall federal budget there's no way it has a meaningful impact.
On the economy through the rest of the year.
Brian for the last two years of budget battles we've had to endure the financial markets for the most part of shrugged them off.
Do you think that'll change at some point five -- For the foreseeable future investors aren't are dismissing Washington they'll pay attention to micro issues like -- a regulatory announcement -- pay attention to Europe.
Still clearly pay attention to the central bank and monetary policy.
Posts here in the US and worldwide.
But when it comes to these fiscal crises for now investors are turning that off and I don't see them really starting to worry about Washington again.
On the fiscal side for the foreseeable future and that's great for the markets -- garner that's a great place to -- at this afternoon and thanks your time.
