No Jobs Data, No Fed Meeting? The Central Bank's December Interest Rate Decision Just Got Harder

Core Insights - The Federal Reserve faces a challenging decision at its upcoming policy meeting regarding whether to cut borrowing costs to support the job market or maintain rates to combat inflation, with the possibility of delaying the meeting altogether due to delayed economic data [1][3][6] Economic Implications - A delay in the December policy meeting could allow the Fed to make a more informed decision based on crucial employment data scheduled for release after the current meeting date [2][6] - The Fed's policy committee is reportedly divided on whether to prioritize inflation control or support the job market, with financial markets indicating an 83% probability of a rate cut in December [8] Data Availability and Decision-Making - The government shutdown has created a data blackout, complicating the Fed's ability to calibrate monetary policy effectively, leading to speculation about postponing the meeting to gather more information [3][4][8] - Without key economic data for October and November, the upcoming meeting may rely more on sentiment rather than concrete evidence, raising concerns about the decision-making process [9]