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Govt shutdown ‘not a major event’: Economist

Big Data Download

Even if it lasted more than a few weeks, the government shutdown won't have much of an impact on the market, according to one economist.

"It obviously depends on how long the shutdown continues. But the direct effect is pretty modest if it lasts even a month,” said Keith Hembre, economist at Nuveen Asset Management. "The estimated effect that you would anticipate for the economy is something like a half a percent, so it's pretty modest," Hembre said.

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Federal Trade Commission employees may be furloughed and IRS audits may be suspended, but overall, the markets don't seem to be too concerned about the shutdown.

"Ultimately the market is going to reflect fundamentals. You have fears of the unknown as it relates to where government policy will ultimately go, but I mean from my standpoint this is just not a major event," Hembre told "Big Data Download."

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