Any hope that the 2-day government shutdown could be suddenly resolved with an early morning vote on Monday morning died moments ago when Chuck Schumer said “there is no deal” while Senate Majority Leader Mitch McConnell said he is canceling the previously scheduled 1am procedural vote and instead the Senate will vote on the stopgap spending bill at noon Eastern on Monday, with the government set to remain closed at least until the vote.
#BREAKING Shutdown to continue. No vote tonight. Schumer says there is no deal. No procedural vote tonight. Procedural vote to break filibuster on Feb 8 CR at noon Monday
— Chad Pergram (@ChadPergram) January 22, 2018
McConnell also said that his intention is to resolve several issues including immigration as quickly as possible, and to move to DACA on Feb. 8 if no deal has been done by then and govt stays open.
Meanwhile, the Senate Democratic Leader Chuck Schumer, objecting to earlier vote timing, said “we have yet to reach an agreement on path forward.”
As discussed earlier, a flurry of activity on Capitol Hill had stoked hopes that a deal to end the shutdown might be reached before furloughs for hundreds of thousands of government workers kick in on Monday. Instead, the Senate is now set to vote at noon on Monday to end debate on a measure that would fund the government through Feb. 8.
Furthermore, by the looks of things…
Just left the gallery seats overlooking Senate. After Schumer’s objection, McConnell physically turned away from him and looked toward Flake. Schumer got up, huddled w/ Hassan, then stepped out of the Senate as Flake spoke softly across the room.
— Robert Costa (@costareports) January 22, 2018
… this shutdown may indeed continue “for weeks” as Goldman predicted on Friday. And while the market may not care for now, should the funding gap extend into late February and early March, just days ahead of the debt ceiling X-Date, the S&P will – sooner or later – be reacquainted with gravity.
Even on Monday, it remains unclear if there will be 60 votes to end debate, given opposition from Senate Democrats to the measure. And, as explained yesterday, without a drop in the stock market to “mediate” and force politicians to negotiate, the question now is how deeply the two sides will dig in further as the work week begins.
Finally, for those wondering if there was any reaction in the market to the ongoing shutdown news, the answer: of course not.