Fed 'Flying Blind' As Shutdown Erases October Jobs, Inflation Reports

Benzinga

The end of the U.S. shutdown leaves the Fed without key October inflation and jobs data ahead of its December meeting. Analysts expect September and Q3 figures by Thanksgiving, while missing wages and delayed spending will drag on fourth-quarter GDP.

Transcript

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

00:02The longest U.S. government shutdown is set to end,

00:04but it has already erased key October inflation and jobs data, according to Benzinga.

00:09Setback is leaving the Federal Reserve without two of its most important indicators

00:12ahead of its December meeting.

00:14Analyst Peter Williams of 22V Research said September and third quarter data

00:18should arrive by Thanksgiving, including retail sales, personal income, and GDP,

00:24which is still expected to grow 3-4% annualized.

00:26The fourth quarter GDP faces a hit of 3 quarters to 1% for missed wages,

00:31frozen benefits, and delayed spending.

00:34Covered data should begin arriving next week and be completed by early December,

00:37while October data will be partial, with no CPI or PCA releases expected.

00:42Covered data may arrive too slowly for the FOMC meeting,

00:45and the jobs report can be delayed or released without its household survey.

00:49For all things money, visit Benzinga.com.

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