Federal Government Shutdown Hampers Key Economic Data
(MENAFN) The ongoing federal government shutdown is preventing the Federal Reserve from accessing crucial economic information ahead of its monetary policy meeting next week.
Despite the ambiguity, analysts anticipate a 25-basis-point reduction in interest rates.
The shutdown, initiated on Oct. 1 over a budget impasse in Congress, has now reached its 25th day, interrupting the regular flow of essential economic statistics.
As a result, the Bureau of Labor Statistics (BLS) has been unable to publish weekly unemployment claims or the nonfarm payroll report originally scheduled for Oct. 3.
The BLS, which also manages inflation metrics, postponed the release of last week’s Producer Price Index (PPI) report and issued the consumer inflation figures only late Friday.
According to the latest data, the US Consumer Price Index (CPI) increased by 0.3% month-over-month and 3% year-over-year in September, falling short of projections.
Core inflation, which excludes fluctuating energy and food costs, also underperformed, rising 0.2% monthly and 3% annually.
White House spokesperson Karoline Leavitt emphasized that inflation results were lower than anticipated due to US President Donald Trump's economic policies.
She stated, "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.”
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