Government Shutdown Threatens Fed Rate Decision as Key Economic Data Delays Loom

The ongoing US government shutdown has sparked concerns about its impact on key economic data and the Federal Reserve’s (Fed) decision-making. With critical reports delayed due to the furloughs, markets are facing uncertainty regarding potential interest rate changes at the end of October. 18 days in, non-essential federal employees have been put on unpaid leave, impacting crucial economic indicators released by agencies such as the Securities and Exchange Commission (SEC). This delay poses a significant challenge for Fed policymakers, who rely heavily on data to inform their interest rate decisions.