"Federal Reserve Mouthpiece": Missing Key Economic Data May Lock in 25 Basis Point Rate Cut Path

Jinse Finance reported that the "Federal Reserve mouthpiece" and Wall Street Journal reporter Nick Timiraos wrote on Thursday that an ongoing government shutdown is putting Federal Reserve officials in a position where they may have to make their next interest rate decision without access to key economic data—data that could have quelled the heated debate over the extent and speed of rate cuts. Ironically, without clear evidence of a sharply deteriorating labor market provided by these reports, efforts by Trump and his allies to push for larger rate cuts are likely to be in vain. The article states that the absence of new government data essentially locks in the prospect of another 25 basis point rate cut at the Fed's next meeting in two weeks—the same magnitude as last month's cut. Last month, concerns over a sharp decline in the job market outweighed worries about sticky inflation, and Fed Chair Powell said this week that this balance of concerns has not changed during the recent data blackout period.