Because of the budget impasse over the government shutdown, the U.S. Labor Department was unable to release their monthly nonfarm payroll report today for the month of September, leaving many investors in the dark over a closely watched barometer of the Fed’s quantitative easing program.
Yesterday the New York Times reported that House Speaker John Boehner (R-Ohio) privately told Republican lawmakers that he would not allow a U.S. default and would use a combination of Republican and Democratic votes to increase the federal debt limit if necessary.
House Speaker Boehner will still have to confront a bloc of conservative Republicans who remain opposed to negotiating a grand bargain with Democrats this early in October.
Many conservative Republicans are hoping to steer away from the unpopular and tiring narrative about “just say no” to the court approved 2010 Affordable Care Act to receive concessions from the White House such as eliminating the 2.3 percent medical device tax and achieve entitlement reform.
Speaker Boehner’s early conciliatory tone over the debt ceiling has helped to restore confidence in the markets but it also poses risks to his leadership position in the conservative bloc of the Republican party that has supported Tea Party candidates and helped to push the Republican agenda.