US EditionUS Fed will likely cut again despite economic murkiness from shutdown
The Federal Reserve plans a 0.25% rate cut to support a weakening labor market amid stalled economic data and political pressures from the government shutdown.
- The Federal Reserve is expected to cut rates this month despite unclear data caused by the government shutdown, with Gagnon stating `In my view, that argument is going to continue to hold sway this month, because the data are still in that direction.`
- Weeks-Long standoff between Republicans and Democrats over healthcare subsidies halted almost all official data, leaving officials dependent on delayed US consumer inflation data at 3.0 and White House pressure on Lisa Cook, Fed governor.
- Employment has slowed sharply with the August jobs figure 22,000, and Joseph Gagnon noted, `In my view, that argument is going to continue to hold sway this month, because the data are still in that direction.`
- Markets reacted by closing at fresh records after the inflation surprise, and Diane Swonk expects the Fed to cut twice more this year and end quantitative tightening next week.
- The Fed's dual mandate forces a choice between jobs and inflation as Jerome Powell, Fed chair , faces political risks from Donald Trump and attempts to remove Lisa Cook, Fed governor.
92 Articles
92 Articles
The Fed Is Flying Partly Blind As It Sets A Benchmark For Global Borrowing
The Federal Reserve will set U.S. interest rates this week with part of its dashboard switched off. A government shutdown that began on October 1 paused most official economic releases—like the monthly jobs report—just as the Fed heads into a pivotal decision. Compounding the blind spot, payroll giant ADP recently stopped sharing the anonymized weekly […]
The Shutdown Is About to Get Really Bad, Shootings Plagued DC Over the Weekend, and a Furloughed Fed Flogs Frankfurters
Good morning. Sunny with a high around 61 today. A low near 44 overnight. The Commanders visit Kansas City this evening. You can find me on Bluesky, I’m @abeaujon.87 on Signal, and there’s a link to my email address below. This roundup is available as a morning email newsletter. Sign up here. I can’t stop
THE INTERVIEW| Fed to Take Cautious Approach as Gov. Shutdown Threatens Economic Clarity
Hilary Golston spoke with Oakland University economics expert Dr. Michael Greiner, who says the Federal Reserve is likely to proceed carefully amid the government shutdown. Greiner explained that while the Fed remains operational, missing data from key agencies like the Bureau of Economic Analysis and Bureau of Labor Statistics could cloud the economic picture. He says policymakers are watching inflation and growth closely but are unlikely to ma…
Fed’s Divisions Set to Deepen When Debate Turns to Further Cuts
The Federal Reserve is expected to deliver a second straight interest-rate cut this week to support a wobbly job market. Any push to extend the easing cycle past October, however, may face renewed opposition from a group of officials who remain anxious over inflation.
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US Fed will likely cut again despite economic murkiness from shutdown
The Federal Reserve is expected to announce its second rate cut of the year on Wednesday, despite a lack of clarity over the health of the US economy due to the ongoing government shutdown.
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