Powell Hints at Government Shutdown Impact on December Meeting

Federal Reserve Chair Jerome Powell has suggested that the ongoing government shutdown could affect the decision made during the December monetary policy meeting. Concerns around limited economic data availability may lead to a more cautious approach, potentially resulting in a pause in adjustments to interest rates. As per CME FedWatch, the probability of a rate cut by the Federal Reserve at this upcoming meeting has decreased from 66.9% to 55.9%. This reflects the uncertainty stemming from the lack of recent economic indicators.