A prolonged data disruption caused by the government shutdown will be a major challenge for the Fed, which is struggling to make interest rate decisions amid mixed economic signals.
The partial US government shutdown that began on October 1 is cutting off the supply of essential economic data, making it difficult for policymakers and investors amid the uncertainty of the US economy.
The monthly jobs report, scheduled for October 3, is likely to be delayed. The weekly report on the number of Americans filing for unemployment benefits, usually released on Thursday, will also be delayed.
Other important reports such as the Inflation Index (scheduled for release on October 15) and Retail Sales (scheduled for release on October 16) are also at risk of being delayed.
A prolonged data disruption will be a major challenge for the US Federal Reserve (Fed), which is struggling to make interest rate decisions amid mixed economic signals.
Inflation in the US remained above the 2% target, while the unemployment rate rose in August due to slowing job creation.
Typically, the Fed cuts interest rates when unemployment rises, and conversely, the Fed maintains or raises interest rates when inflation rises.
Without new data, the Fed will have little to digest before its next meeting on October 28-29, when investors expect it to cut interest rates again after its first cut of the year last month.
Analysts also warn that the lack of official data makes it difficult to assess whether the job market is slowing or accelerating, and private sector data will play a key role.
Specifically, a report released by human resource management service provider ADP on October 1 showed that businesses cut 32,000 jobs in September, a signal that the job market is slowing. However, this data cannot completely replace government statistics, which are more comprehensive./.
Source: https://baolangson.vn/fed-gap-kho-khi-chinh-phu-my-dong-cua-mot-phan-5060643.html
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