Powell warns shutdown is clouding Fed's view of the economy: 'Driving in the fog'

Core Viewpoint - The ongoing government shutdown is creating uncertainty regarding key economic data, which may impact the Federal Reserve's decision-making for the upcoming December meeting [1][5][7]. Group 1: Federal Reserve's Response - Federal Reserve Chairman Jerome Powell emphasized the need for caution in policy decisions due to the lack of complete economic data caused by the government shutdown [1][5]. - The Federal Open Market Committee (FOMC) is scheduled to meet on December 9-10, and Powell indicated that the Fed will continue its work despite the incomplete data [2][5]. - The Fed has already implemented its second interest rate cut of the year to support the labor market, even as inflation remains above target levels [7]. Group 2: Economic Indicators - Powell noted that while official employment data for September is delayed, available evidence suggests low levels of layoffs and hiring, with declining perceptions of job availability among households and hiring difficulty among firms [9]. - The Fed is committed to collecting and evaluating all available data to make informed decisions, despite the challenges posed by the shutdown [7][10].