Fed’s Powell Says Shutdown Hasn’t Hurt Economy, Warns Long Layoff Could Do Damage

U.S. Federal Reserve chair Jerome Powell speaks during a discussion at the Economic Club in Washington on Jan. 10, 2019. SAUL LOEB/AFP/Getty Images

WASHINGTON—The economic impact of the partial government shutdown is negligible, however, an extended shutdown could be a drag on the economy, Federal Reserve Chairman Jerome Powell warned.

Speaking at the Economic Club of Washington on Jan. 10, Powell said that past government shutdowns didn’t last long and, hence, hadn’t left a mark on the economy.