The Bipartisan Policy Center’s prediction “could mean that September is a volatile month in Washington and for financial markets,” said KBW analysts in a note. “‘Normal’ does not live in Washington anymore, so while we think chances favor a resolution on the issue, we also need to acknowledge that the chances Congress will drop the ball have risen,” they also wrote. KBW’s team said both Republicans and Democrats want to avoid another partial government shutdown, but the “December/January shutdown showed that political compromise is a lost art and a repeat of that shutdown is possible, even if unlikely.” Related: ... (full story)