U.S. Markets

Goldman lowers chances of U.S. government shutdown to 15 percent

U.S. President Donald Trump speaks about tax reform during a visit to Loren Cook Company in Springfield, Missouri, U.S., August 30, 2017. REUTERS/Kevin Lamarque

NEW YORK (Reuters) - Goldman Sachs economists on Wednesday downgraded the probability of a U.S. government shutdown to 15 percent from 35 percent last week on expectations that rebuilding efforts after Hurricane Harvey would reduce risks of a showdown over federal funding and the debt ceiling.

“Hurricane Harvey has rearranged the fiscal policy agenda. In the short run, the outlook has become more benign,” the Goldman economists wrote in a research note.

Reporting by Richard Leong; Editing by Chizu Nomiyama