If the political stalemate in Washington impedes an agreement on raising the debt ceiling, it could send the U.S. economy back into a recession, former Treasury official Mark Patterson told CNBC on Wednesday.
Washington was officially shut down on Tuesday, marking the first U.S. government closure in 17 years and sending hundreds of thousands of government workers home, after politicians failed to renew the federal budget into a new fiscal year.
Patterson, the former chief of staff to the Secretary to the Treasury Jacob Lew, said a brief closure would likely have a minor impact on the world’s largest economy’s gross domestic product, but a longer closure would present a different level of issues.
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