Government Shutdown Hampers Fed’s Economic Insights

The ongoing U.S. government shutdown is creating significant challenges for the Federal Reserve (Fed). The lack of official economic data, alongside restricted access to private employment figures from a third-party provider, has disrupted the Fed’s ability to understand key economic indicators. This situation puts a damper on their policy assessment as they prepare for the upcoming FOMC meeting. Analysts express concern that these data gaps could lead to delayed decisions or increased uncertainty regarding future rate adjustments.