'Shutdown poses risk to US recovery'
WASHINGTON: Chief executive officers (CEOs) at companies ranging from Honeywell International Inc to JetBlue Airways Corp said a prolonged shutdown of the US government has the potential to jeopardise the economic rebound.
The government yesterday began idling as many as 800,000 federal employees after Congress failed to break a partisan deadlock over whether to tie any changes to President Barack Obama's health-care law to an extension of government funding.
Foot Locker Inc CEO Ken Hicks said the government shouldn't be shut down over the dispute. It could hurt a fragile recovery in what he calls challenging times.
The first partial shutdown in 17 years may subtract as much as 1.4 per cent from economic growth, depending on its length, according to Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia.
"If this lingers for a while, it endangers the economic recovery at best," JetBlue CEO Dave Barger said in an interview."
That echoed remarks by David Cote, CEO of Honeywell, who has said a fiscal impasse may plunge the world's largest economy into recession. Bloomberg