Fed likely to opt for cautious quarter-point rate cut amid data blackout
Facing a U.S. government shutdown that has delayed key economic releases—including the jobs and inflation reports—the :contentReference[oaicite:1]{index=1} is expected to proceed with a modest 0.25 % rate cut at its upcoming meeting. Officials emphasised caution, citing reliable private-sector proxies but noting they lack full clarity. With markets pricing around 70% chance of the cut, analysts say the central bank’s flexibility is constrained but the move signals willingness to loosen policy if labour softness continues. The shutdown’s drag on real-time data adds interpretive risk to decisions.
neutral
1 day ago
Fed likely to opt for cautious quarter-point rate cut amid data blackout
Facing a U.S. government shutdown that has delayed key economic releases—including the jobs and inflation reports—the :contentReference[oaicite:1]{index=1} is expected to proceed with a modest 0.25 % rate cut at its upcoming meeting. Officials emphasised caution, citing reliable private-sector proxies but noting they lack full clarity. With markets pricing around 70% chance of the cut, analysts say the central bank’s flexibility is constrained but the move signals willingness to loosen policy if labour softness continues. The shutdown’s drag on real-time data adds interpretive risk to decisions.
neutral
Fed likely to opt for cautious quarter-point rate cut amid data blackout
1 day ago
1 min read
85 words
Fed is likely to cut rates by 25 bps amid a data blackout caused by the government shutdown—reflecting policy caution.
Facing a U.S. government shutdown that has delayed key economic releases—including the jobs and inflation reports—the :contentReference[oaicite:1]{index=1} is expected to proceed with a modest 0.25 % rate cut at its upcoming meeting. Officials emphasised caution, citing reliable private-sector proxies but noting they lack full clarity. With markets pricing around 70% chance of the cut, analysts say the central bank’s flexibility is constrained but the move signals willingness to loosen policy if labour softness continues. The shutdown’s drag on real-time data adds interpretive risk to decisions.
Facing a U.S. government shutdown that has delayed key economic releases—including the jobs and inflation reports—the :contentReference[oaicite:1]{index=1} is expected to proceed with a modest 0.25 % rate cut at its upcoming meeting. Officials emphasised caution, citing reliable private-sector proxies but noting they lack full clarity. With markets pricing around 70% chance of the cut, analysts say the central bank’s flexibility is constrained but the move signals willingness to loosen policy if labour softness continues. The shutdown’s drag on real-time data adds interpretive risk to decisions.