This Week In The Economy: Govt Shutdown Could Cost US Its Only Triple A Rating, Core Consumer Price Hikes Below 4% In August, Souring Consumer Confidence, Bleak Assessment For Germany

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

Government Shutdown Threatens U.S.’ Final ‘AAA’ Credit Rating

The looming federal government shutdown, mainly down to infighting within the House Republican caucus over proposed budget cuts and spending limits, will be a significant blow to the country’s political credibility and put its last remaining Triple-A credit rating at risk.

“A shutdown would be credit negative for the US sovereign [rating],” Moody’s analysts warned in a research note this week. “While government debt service…