//Capitol Report: Neither side has exit strategy for government shutdown, analysts say

Capitol Report: Neither side has exit strategy for government shutdown, analysts say

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No exit in sight for the shutdown

The record partial government shutdown continues into a fourth week with neither side appearing anxious to find an exit strategy, analysts say.

Both sides appear dug in, and it remains to be seen if growing hardships on government workers and delays for travelers in airports begins to pressure both parties.

On Monday, Trump said he rejected a proposal by Sen. Lindsey Graham, Republican of South Carolina, for a deal to reopen the government while the talks continue. Trump continues to press Democrats to accept funding to build a wall along the U.S. -Mexico border.

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He also said he was not looking to declare a national emergency to build the wall.

“Nothing is certain and both parties have plenty to blame, but at some point an exit strategy seems inevitable —hopefully by the end of the week,” said Thomas Block, Washington policy strategist at Fundstrat Global Advisors, in a note to clients.

Attention should be focused on Sen. Mitch McConnell, the majority leader of the upper chamber, as he is likely to play a key role in any resolution. McConnell thus far has largely remained out of the headlines during the shutdown.

Analysts at Height Capital Markets agreed there was no “clear avenue” to reopen the government. It may take pressure on the 22 Senate Republicans up for reelection in 2020 before any deal is reached.

Brian Gardner, director of Washington research at Keefe, Bruyette & Woods, said there is more pressure on each party’s base not to compromise rather than reach a deal.

Jaret Seiberg, financial services analyst for Cowen Washington Research Group, said he thought that Trump would want to end the shutdown before he gives his State of the Union address on Jan. 29.

“We don’t see how he permits the government to be shutdown for this address. It would overshadow everything else he has to tell the public,” Seiberg said.