As data went dark from the government shutdown, the Federal Reserve's inflation hawks pushed to pause rate cuts at a contentious October meeting. The divide might not end soon.

Core Insights - The government shutdown has led to a lack of data, complicating the decision-making process regarding interest rate cuts [1] - Inflation hawks are advocating for a pause on rate cuts during the contentious October meeting, indicating a significant divide among policymakers [1] - The ongoing divide over monetary policy may persist, suggesting potential volatility in the financial markets [1] Economic Impact - The absence of government data due to the shutdown is creating uncertainty in economic indicators, which could affect investment strategies [1] - The push from inflation hawks to maintain higher interest rates reflects concerns over inflationary pressures, which could influence borrowing costs and consumer spending [1] Market Reactions - The contentious nature of the October meeting may lead to increased market volatility as investors react to differing opinions on monetary policy [1] - The potential for a prolonged divide among policymakers could result in fluctuating market conditions, impacting investment decisions [1]