WASHINGTON — Just hours after signing legislation to end the budget and debt-ceiling impasse and reopen the government, President Obama warned that the political crisis had set the economy back but assured investors the economy would recover as he outlined three priorities on his agenda for the remainder of the year.
Obama spoke from the White House after signing legislation that reopened the government Thursday after a 16-day shutdown, continued funding for federal agencies until Jan. 15 and raised the nation’s debt ceiling through Feb. 7, averting a default on U.S. Treasury notes. The legislation also gave back pay to hundreds of thousands of workers that were furloughed during the shutdown.
“These last few weeks have inflicted completely unnecessary damage on our economy,” Obama said. “We don’t know yet the full scope of the damage, but every analyst out there believes it slowed our growth.”
Obama noted that families have had to make do without paychecks and consequently cut back on spending, while potential home buyers received fewer approvals of mortgage applications and small businesses were unable to get loans. RELATED STORY: The Debt Debate's Consumer Hangover >>
“We know that consumers have cut back on spending and that half of all ceo’s say that the shutdown and the threat of a shutdown set back their plans to hire over the next six months,” Obama said. “At a moment when our economic recovery demanded more jobs…we’ve got yet another self-inflicted crisis that set our economy back and for what? There was no economic rationale for all of this. Over the past four years, our economy has been growing, our businesses have been creating jobs and our deficit has been cut in half.”
On Wall Street, markets were mixed, but investors seemed generally content to push on once the immediate danger of a debt default had passed.
The S&P 500 Retailing Industry Group increased 0.7 percent, or 5.68 points, to 855.66, as the Dow Jones Industrial Average slipped fractionally, falling 2.18 points to 15,371.65. The S&P 500 gained 0.7 percent, or 11.61 points, to 1,733.15 — the index’s best close ever.
Obama rebuked Republicans for the political brinkmanship that brought the country to a potential default on its debt payments and temporarily hurt America’s credit rating, but he sought to assure financial markets that the economy would quickly rebound.
“Now, the good news is we’ll bounce back from this. We always do,” Obama said. “America is the bedrock of the global economy for a reason. Today, we want our people, businesses and the rest of the world to know that the full faith and credit of the United States remains unquestioned.”
The President also outlined three policy priorities for the rest of the year: negotiating a long-term budget deal, Congressional passage of comprehensive immigration reform and passing a farm bill.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)