It may compel Congress to push some legislation through.
U.S. lawmakers and other policy makers could be prompted to protect American small business in the wake of the U.K.’s decision to leave the Eureopean Union, as Business News Daily writes. For one, the article says, it could lead Congress to do away with some of the regulations that restrict small businesses.
As Richard Williams, director for the regulatory studies program at the Mercatus Center at George Mason University, told the media outlet: “What it means for small businesses is that there is likely to be some ripples across the pond. Right now there are 50 to 60 regulatory reform bills in Congress that are essentially stalled. I think over the next few months we will hear a lot more about how regulations hurt small businesses and perhaps put pressure on Congress to act.”
The article also cites analysts who say that Europe could fall back into recession, which may keep the Federal Reserve from raising interest rates. The Fed also offered this statement regarding instability in global financial markets: “The Federal Reserve is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the U.S. economy.”
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