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Fed Faces Year-End Policy Decision
(MENAFN) The US Federal Reserve approaches next week’s final monetary policy meeting of the year with limited information, and despite varying views among policymakers, a 25 basis point interest rate reduction is increasingly anticipated.
The Federal Open Market Committee (FOMC) is set to determine the trajectory of the policy rate during its concluding meeting of the year on Dec. 9-10, following the 25 basis point cut implemented in October.
Fed officials will be making their decision on monetary policy next week under conditions of scarce data, largely due to disruptions caused by the US government shutdown.
Following the conclusion of the longest government shutdown in US history on Nov. 12, agencies updated their reporting schedules; however, essential data such as the October employment report and inflation figures could not be released, as some information could not be gathered during the shutdown.
During this interval, the delayed release of September data by official agencies and supplementary figures provided by private organizations were closely observed.
While the available information offered mixed signals regarding the labor market, the most recent alternative data heightened concerns about a potential softening in employment.
The Federal Open Market Committee (FOMC) is set to determine the trajectory of the policy rate during its concluding meeting of the year on Dec. 9-10, following the 25 basis point cut implemented in October.
Fed officials will be making their decision on monetary policy next week under conditions of scarce data, largely due to disruptions caused by the US government shutdown.
Following the conclusion of the longest government shutdown in US history on Nov. 12, agencies updated their reporting schedules; however, essential data such as the October employment report and inflation figures could not be released, as some information could not be gathered during the shutdown.
During this interval, the delayed release of September data by official agencies and supplementary figures provided by private organizations were closely observed.
While the available information offered mixed signals regarding the labor market, the most recent alternative data heightened concerns about a potential softening in employment.
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