Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee affirmed on Thursday that, lacking any new information from official data sources, the Fed will have no choice but to make ongoing interest rate decisions using the information currently available to it. With current and estimator US labor data showing a steepening slowdown spreading through the US labor market, this cements the Fed into a steady rate-cutting regime through the remainder of the year.
Key highlights
The immediate impact of the shutdown will be on federal workers who don’t get paid on time.
Without the official unemployment rate the Fed will make a decision with the information it has.
Real time indicators show a steady unemployment rate.
Hopefully the shutdown ends soon without repercussions for the broader economy.
