Government shutdown unlikely to stop March rate hike, Deutsche Bank says

You’ll still end up paying more to borrow money, Deutsche Bank economists predict, even if the government shuts down for a while.

The impact of a congressional failure to strike a deal on funding federal operations “should be insufficient” to significantly lower the odds of a 25 basis-point rate hike that traders are betting will occur in March, Deutsche Bank’s Matthew Luzzetti and Brett Ryan wrote in a note to clients on Friday.