Federal Reserve faces challenges in evaluating US economic conditions due to shutdown

The government shutdown has obstructed access to vital economic reports, compelling the Federal Reserve to utilize private data to inform monetary policy decisions. An economist highlighted the necessity of balancing different inputs amidst the lack of key employment data, with inflation concerns rising.

In the meantime, expectations are high for interest rate adjustments during upcoming Fed meetings, potentially lowering rates to between 3.5% and 3.75%. Nevertheless, future paths for interest rates remain uncertain as the Fed navigates inflationary challenges and economic signals.