‘Extremely negative’ if government shutdown persists


Morgan Stanley CEO James Gorman said Thursday he’s worried about the U.S. government shutdown continuing.

“I personally feel it’s extremely negative if this shutdown goes on much longer,” Gorman told CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland. “At a human level, you’ve got 800,000 families affected by this. This is not the way the U.S. should be working.”

“If it goes on through months of this year, it’s going to have an extremely damaging effect” on the U.S. economy, he said.

The shutdown is in its 34th day as the Trump administration and Democratic leadership remain in a stalemate over funding for a wall along the U.S.-Mexico border. Kevin Hassett, chairman of President Donald Trump’s Council of Economic Advisers, said Wednesday the U.S. economy may not grow at all in the first quarter if the government stays closed.

“I truly hope the leadership of both sides come to some way of resolving what seems to be a relatively straight-forward problem,” Gorman added. “I recognize we have a wall. It’s 500 miles long. We’ve had it for a long time, and it’s been sponsored by Democrats and Republicans for a long time. If there are some sensible additions to be made to the wall to improve border security, let’s make them.”

Gorman also said accommodations are needed for children affected by the Deferred Action for Childhood Arrivals program. It allows certain migrants who were brought to the U.S. illegally as children to receive permits to work in the country and avoid deportation.

2019-01-24 12:20:00

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