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Federal shutdown cuts off economic data vital to policymakers and investors
['Associated Press']
News – The News Herald
But if the release of economic data is delayed for several weeks or longer, it could pose challenges, particularly for the Federal Reserve.
The Fed typically cuts this rate when unemployment rises, but raises it — or at least leaves it unchanged — when inflation is rising too quickly.
A key inflation report is scheduled for Oct. 15 and the government’s monthly retail sales report is slated for release the next day.
“We’re in a meeting-by-meeting situation, and we’re going to be looking at the data,” Fed Chair Jerome Powell said during a news conference earlier this month.
With the government closed, the Fed, economists, and investors will likely focus more on private data.