The federal shutdown is delaying the release of critical inflation figures

Core Insights - The government shutdown is delaying the release of key economic reports, complicating the Federal Reserve's ability to assess the economy amid persistent inflation and a slowdown in hiring [2] - The Labor Department's monthly inflation data, originally scheduled for release on October 3, has been postponed to October 24 due to the shutdown, affecting the calculation of cost-of-living adjustments for benefit programs [2] - Federal Reserve Chair Jerome Powell indicated that the Fed is currently relying on private sector data and anecdotal reports to gauge economic conditions, but the lack of timely government data could pose challenges [2] Economic Impact - Inflation remains above the Fed's target of 2%, with the latest figures showing a year-over-year increase of 2.9% [2] - The unemployment rate has increased slightly to 4.3% in August from 4.2% in July, indicating a weakening in hiring [2] - The Fed faces a dilemma between raising interest rates to combat inflation and cutting rates to support employment, as both policy goals are in conflict [2]