No signs of progress as Democrats get ready to take over the House
Democrats will take control of proceedings at the House starting this Thursday and their first order of business will likely be to pass a bill to end the partial federal government shutdown, and one that will see no additional resources for Trump's border wall.
But once again, even if they plan such a move, Senate majority leader Mitch McConnell isn't expected to let the bill head to a vote at the Senate as long as Trump refuses to endorse such a bill. Therefore, the impasse looks set to continue indefinitely.
In essence, the impasse seen here is basically a representation of the kind of gridlock markets should come to expect following the US midterm elections last month. It is very much a period where we'll see Democrats and Republicans having to balance things out and work together for a bipartisan agenda as the former seeks to oust Trump in the 2020 elections.
So far, there aren't any signs over the weekend to suggest the political gridlock here will be broken. The longer this extends, the more it'll put a dent in market confidence over future US policy making to come. That should keep any dollar gains capped while at the same time limiting optimism in stocks as well.
The only good thing about what is happening here is that it is all taking place during the holiday shuffle. Hence, it is quietly slipping under the radar but expect more headlines on this to come about in the coming days or week if it is still not resolved any time soon.
