(MENAFN) The Federal Reserve faces a critical monetary policy decision next week amid an unprecedented information vacuum, as the ongoing federal government shutdown has severed access to vital economic indicators—yet analysts still anticipate a 25 basis point interest rate reduction.

The shutdown, now in its 25th day after launching Oct. 1 following a congressional budget impasse, has crippled the release of essential national economic statistics that typically guide central bank deliberations.

The Bureau of Labor Statistics (BLS) failed to publish weekly unemployment claims figures and the closely watched nonfarm payroll report originally scheduled for Oct. 3, leaving policymakers and market participants in the dark about labor market conditions.

The BLS, which also manages inflation tracking, postponed last week's scheduled Producer Price Index (PPI) release and delivered consumer inflation data late Friday—creating additional uncertainty for economic forecasters.

The delayed figures revealed that the US Consumer Price Index (CPI) climbed 0.3% month-over-month and 3% year-over-year in September, falling below analyst projections. Core inflation, which strips out volatile energy and food prices, similarly underperformed expectations at 0.2% monthly and 3% annually.

White House spokeswoman Karoline Leavitt attributed the softer-than-anticipated inflation readings to US President Donald Trump's economic agenda. "Democrats choosing to keep the government closed will likely result in no October inflation report, which will leave businesses, markets, families, and the Federal Reserve in disarray," she said.

With official government statistics unavailable, economists and investors have turned to alternative private sector publications for labor market clues, including the ADP Research Institute's employment report and the Challenger, Gray & Christmas layoff tracking data.

The ADP report delivered troubling news, showing private sector employment contracted by 32,000 jobs in September—a sharp reversal from expectations for job growth and a potential warning sign about economic momentum heading into the final quarter.

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