Morgan Stanley CEO says it is ‘extremely negative’ if the government shutdown goes on further
“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 U.S. government has been shutdown for 34 days as the Trump administration and Democratic leadership are at a stalemate over funding for a wall along the U.S.-Mexico border. Kevin Hassett, the chairman of President Donald Trump’s Council of Economic Advisers, said Wednesday the U.S. economy could 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 for children affected by the Deferred Action for Childhood Arrivals (DACA) program. It allows certain young migrant who were brought to the U.S. illegally as children to receive permits to work in the country and avoid deportation.