U.S. Government Shutdown Threatens Fed Rate Cuts, Causing Crypto Market Turmoil

The potential U.S. government shutdown is casting a shadow over the Federal Reserve’s rate-setting decisions, with experts questioning its impact on interest rate cuts expected in December. Uncertainty regarding this decision hangs heavy on financial markets, highlighting the complex interplay between government activity and economic forecasts. Analysts Simon Ballard and Almahdi Alnuaimi of First Abu Dhabi Bank warned that the shutdown could potentially halt rate cuts despite dissenting views, as Fed Chair Jerome Powell has indicated a degree of uncertainty regarding a December rate cut. No specific decision has been made by the Fed.