Government Shutdown Impacts Fed Decisions with Data Shortage

A prolonged U.S. government shutdown has created a significant data gap at a critical moment for financial markets, as investors await the Federal Reserve’s next rate decision. The lack of timely employment data from official sources is causing uncertainty and complicating policymakers’ understanding of the labor market’s direction and inflation trends. While private payroll data offers some insights, it falls short of providing the full picture required by the Fed.