Tuesday, 02 January 2024 12:17 GMT

Fed gets deprived from critical data amid ongoing government shutdown


(MENAFN) The ongoing federal government shutdown is depriving the Federal Reserve of key economic data ahead of next week’s policy meeting, yet a 25-basis-point interest rate cut is still widely anticipated.

Now in its 25th day, the shutdown, which began on Oct. 1 due to a budget impasse in Congress, has disrupted the release of crucial economic indicators. The Bureau of Labor Statistics (BLS) has been unable to publish weekly unemployment claims or the nonfarm payroll report originally scheduled for Oct. 3.

Additionally, the BLS postponed the release of Producer Price Index (PPI) data and delayed consumer inflation figures until late Friday. The Consumer Price Index (CPI) for September rose 0.3% month-over-month and 3% year-over-year, falling below expectations. Core inflation, which excludes energy and food, also came in lower than anticipated at 0.2% monthly and 3% annually.

White House spokeswoman Karoline Leavitt credited the lower-than-expected inflation to US President Donald Trump’s economic policies. “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.

MENAFN26102025000045017281ID1110248652



MENAFN

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Search