Government funding uncertainties bad for economy, markets: Tony Sayegh

Negotiations are continuing in an effort to avoid a government shutdown as the Friday midnight deadline looms. Democrats want a solution to protect DACA, while Republicans are pushing for a plan that bolsters military spending.

However, Tony Sayegh, assistant Secretary of the Treasury, is very optimistic a government shutdown won’t happen.

“We certainly support extending a short-term CR (continuing resolution) so we can continue the negotiations and iron out some of the details,” Sayegh told FOX Business’ Stuart Varney on “Varney & Co.”

But in the long-term, Sayegh says President Trump wants lawmakers to send a two-year budget deal to his desk.

“The president does not want to continue to see this Washington [as] business as usual approach of short-term gap-stop by short-term gap-stop, we need a longer-term solution.”

Sayegh did not foresee the spending bill debate and potential government shutdown as impacting implementation of the tax reform package, but did raise concerns that the pattern of short-term solutions for funding the government was a risk to the U.S. economy and markets.

“Uncertainty does not help, does not help the economy, does not help businesses, does not help the market, so we in Washington need to learn to plan appropriately like companies and families have to do for the long term when it comes to our fiscal books and that’s what the president’s pushing for.”