Even though there's a short-term deal to reopen the government and raise the debt ceiling, the never-ending cycle of budget fights are hurting consumer confidence and creating uncertainty about the economy, business leaders and an economist said.
"All of the surveys show that consumers are cautious," said Jon Hurst, president of the Retailers Association of Massachusetts. "It couldn't have come at a worse time," Hurst said of the 16-day showdown.
With just over a month before the holiday shopping season gets going, lower confidence could lead to lower spending at a key time, he said.
The bipartisan legislation put together by the Senate lets the Treasury borrow through Feb. 7, and funds the government through Jan. 15. The Senate and later the House both passed it last night. The White House said President Obama signed the bill early today, hours after the House gave final approval.
"We fought the good fight. We just didn't win," House Speaker John Boehner said.
The White House budget office has already instructed federal workers to plan to return to work this morning.
"We'll begin reopening our government immediately and we can begin to lift this cloud of uncertainty from our businesses and the American people," the president said.
The bill, however, only delays the same debate, said Jim Klocke, executive vice president of the Greater Boston Chamber of Commerce.
"The fact that the deal that has been struck is only a three-month fix is in many ways only going to prolong the uncertainty," Klocke said. "All we've done is deferred the arrival of the bullet for a few months."
Nigel Gault, co-chief economist for the Parthenon Group, said the nation's global credibility will take a hit.
"We've gone to the brink once again, damaged the international reputation of the U.S.," Gault said.
The bill contained almost nothing substantial for Republicans demanding changes to Obamacare. The only provision is a requirement for Health and Human Services Secretary Kathleen Sebelius to produce a report stating her agency can verify the incomes of individuals who apply for federal subsidies.
Republican Sen. Rand Paul of Kentucky, a potential 2016 presidential candidate, told Boston Herald Radio yesterday he was never in favor of shutting down the government as a way to fight Obamacare. "I've always thought really if you want to talk about Obamacare, talk about how bad it is, and how awful it's going to be ... that's all good. But attaching it to shutting down the government, I didn't think was a good idea," he said.
The Associated Press contributed to this report.
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