Government shutdown looms as Republican speaker search continues

Michael Townsend, managing director of legislative and regulatory affairs at Charles Schwab, said Tuesday that he wouldn't be surprised if the U.S. federal government shuts down next month, but that Wall Street would likely shrug it off like it has in prior years.
"I'm not really worried about how the market will react if we do have a shutdown," Townsend said at Schwab's Impact conference in Philadelphia.
Townsend's comments came shortly after Rep. Tom Emmer of Minnesota dropped his bid for Speaker of the House. The continued failure to find a Speaker means that Rep. Patrick McHenry of North Carolina could end up getting some temporary powers in order to help Congress operate, Townsend said.
The Schwab expert also said that the federal deficit is becoming a bigger factor in markets due to higher interest rates but that there is not urgency in Washington to address the budget shortfall in a significant way.
“The changes in spending that even Republicans are talking about are tiny drops in the bucket compared to these big issues,” Townsend said. $Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$ $S&P 500 Index (.SPX.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR S&P 500 ETF (SPY.US)$