The U.S. government shutdown has thrown the brakes on the flow of federal economic data at a moment of uncertainty and division among policymakers like those at the Federal Reserve about the health of the U.S. job market, the trajectory of inflation and the strength of consumer spending and business investment.
But the shutdown itself - if history is any guide - is unlikely to leave a lasting imprint on the U.S. economy itself, even if it leaves policymakers and investors flying somewhat blind for an unknown stretch.
The U.S. government shutdown has thrown the brakes on the flow of federal economic data at a moment of uncertainty and division among policymakers like those at the Federal Reserve about the health of the U.S. job market, the trajectory of inflation and the strength of consumer spending and business investment.
But the shutdown itself - if history is any guide - is unlikely to leave a lasting imprint on the U.S. economy itself, even if it leaves policymakers and investors flying somewhat blind for an unknown stretch.
"It pains me that we wouldn't be getting official statistics at exactly a moment when we're trying to figure out is the economy in transition," Chicago Fed President Austan Goolsbee said Tuesday on "The Claman Countdown" on Fox Business.
JOBS REPORT DELAYED DURING SHUTDOWN
The Fed cut interest rates last month for the first time since December on growing concern about the job market. Projections from policymakers issued alongside that decision, though, showed a number of them are not convinced risks to the job market are significant enough to warrant more cuts in the near term.
Now they may not see the benchmark monthly employment report, opens new tab from BLS - originally scheduled for release on Friday - before their October 28-29 meeting if a shutdown drags on for weeks like the most recent one did during President Donald Trump's first term.
Source: reuters