US data agency cancels October inflation report as Fed considers whether to cut rates

Core Insights - The US federal government will not publish official inflation data for October, impacting the Federal Reserve's decision-making on interest rates [1][2] - The cancellation of the consumer price index (CPI) report adds uncertainty to the assessment of the US economy's strength [2][4] - Fed Chair Jerome Powell has indicated a cautious approach in the absence of key economic data, comparing the situation to "driving in the fog" [2][4] Economic Context - Recent CPI releases indicate that price growth remains above typical levels, prompting actions from policymakers to address affordability concerns [2][3] - The Federal Reserve raised interest rates aggressively in 2022 and 2023 to combat inflation, with cautious cuts beginning late last year [3] - Fed officials are under pressure from external demands, including those from former President Trump, to consider further interest rate cuts [3][4] Labor Market Insights - The latest jobs report for September showed mixed results, with 119,000 jobs added but an increase in the unemployment rate to its highest level since 2021 [5] - The September jobs report was delayed due to the government shutdown, and the October report will not be released, with job data for October to be included in the November report [6]