(MENAFN) The recent shutdown of the US federal government threatens to disrupt critical agency operations and delay the release of vital economic data, potentially pushing back the Federal Reserve’s anticipated rate cut decisions.

As Congress failed to pass a temporary budget measure before the new fiscal year, the government entered its first shutdown since 2019. This halt in funding forces the federal government to suspend all non-essential functions. Non-essential federal employees are furloughed without pay, while essential personnel—such as those in the military, intelligence, hospitals, airports, and prisons—continue working but remain unpaid.

Sant Manukyan, deputy general manager at Türkiye-based IS Investment, told media that the US Treasury maintains a $700 billion reserve to manage risks, currently holding even more than that amount.

Regarding the shutdown’s impact, Manukyan said it might not pose “much of a problem,” referencing a similar scenario during President Donald Trump’s first term.

He cautioned, however, that “The failure of key institutions to release data due to the shutdown could result in a postponing of any rate cut decision previously planned.”

Manukyan also noted that some missing data might be offset by private firms such as Automatic Data Processing Inc and the Institute for Supply Management.

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