Nick Timiraos, a Wall Street Journal reporter who is the Fed's mouthpiece, wrote on Thursday that a prolonged government shutdown is leaving Fed officials open to the possibility of making their next interest rate decision in the absence of key economic data that would have quelled a bitter debate over how much and how fast to cut rates.
The irony is that without the clear evidence of a sharp deterioration in the labor market that these reports can provide, the efforts of Trump and his allies to seek deeper rate cuts are likely to be in vain.
The absence of the new government data effectively locks in the prospect of another 25 basis points cut at the Fed's next meeting in two weeks' time - the same amount it cut last month. Concerns about a sharp decline in the labor market overwhelmed concerns about stickiness in inflation last month, and Fed Chairperson Jerome Powell said this week that the balance of concerns had not changed during the recent data gap.
"Fed megaphone": lack of key economic data may lock the 25 basis point interest rate cut path
2025-10-17 04:14:04
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