Fed Faces Data Blackout As Shutdown Threatens To Skew Rate Decisions

Benzinga

The Fed faces a data blackout from the government shutdown, delaying key inflation and jobs reports. Powell warned the gap complicates policy decisions as officials debate whether to stick with a smaller rate cut in December.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02The extended government shutdown threads leave the Federal Reserve without crucial data on

00:06inflation and jobs ahead of its next policy meeting, complicating decisions on how fast

00:10we'll cut rates, according to the Wall Street Journal. The employment and consumer price

00:13reports delayed. The Fed is expected to stick with a quarter point rate cut rather than adopt

00:18the larger reduction sought by Trump and his allies. Fed Chair Jerome Powell said the data

00:22blackout could make policymaking more challenging and prolonged, while officials rely on private

00:27sector data as a temporary substitute. This reports have reopened internal divisions over

00:32whether labor markets are weakening or inflation is stabilizing, setting up a sharper debate

00:36before the December meeting. For all things money, visit Benzinga.com.

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