'Sequester' could cause trouble for consumers - FOX 26 News | MyFoxHouston

'Sequester' could cause trouble for consumers

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HOUSTON (FOX 26) -

The clock is ticking on another financial deadline in Washington, D.C. that could see billions of dollars in across-the-board spending cuts.

It's called the 'sequester,' a deal approved by lawmakers and the White House in 2011 as a painful incentive to reach agreement on taxes and spending.

Without agreement, almost every government program will lose money.

While a deal appears nowhere in sight, financial analysts say the cuts could have a negative effect consumers.

Financial advisor, Lance Roberts says downsizing in federal programs would mean less demand for products and service and an inevitable response from the marketplace.

"Jobs are going to be lost, or at least the threat of it," says Roberts, "That's going to reduce consumer confidence , because 'I'm afraid of losing my job so I don't spend as much', which, in turn, hits the economy."

The sequester deadline is March 1, leaving lawmakers just four days to reach a deal when they return from their current break.

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