Unless Congress reaches a compromise on funding by midnight, there will be no budget and the government will shut down—sending out waves of implications that will disrupt the insurance industry, according to AM Best.
“The potential government shutdown coincides with increasing evidence of a slowing U.S. economy,” said Ann Modica, director of credit rating criteria at AM Best.
“Annual real GDP growth is expected to decelerate in 2025; inflation has been persistently above the federal reserve’s 2.0% target; and more recently, the labor market is showing signs of weakness,” she added in a statement to