Fed Approaches Year-End Meeting

(MENAFN) The US Federal Reserve is heading into next week's concluding monetary policy meeting of the year with a scarcity of fresh data.

Despite differing viewpoints among officials, speculation about a 25 basis point reduction in interest rates is gaining traction.

The Federal Open Market Committee (FOMC) is set to determine the direction of the policy rate at its final gathering of the year on Dec. 9-10, following a 25 basis point reduction implemented in October.

Fed officials face the challenge of making decisions next week with constrained data, largely due to disruptions from the US government shutdown.

The longest government shutdown in US history concluded on Nov. 12, after which institutions updated their data schedules.

However, key information, including the October employment report and inflation figures, could not be released because some data collection was interrupted during the shutdown.

During this interval, analysts relied heavily on delayed September data released by official agencies and alternative metrics published by private organizations.

While these available statistics delivered mixed signals regarding the labor market, the most recent alternative indicators heightened concerns about a potential softening in employment.

According to information from the US Department of Labor, non-farm payrolls increased by 119,000 in September, surpassing forecasts, while the unemployment rate inched up from 4.3% to 4.4%.

Additional data from the department this week indicated that initial claims for unemployment benefits dropped to 191,000 in the week ending Nov. 29.

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