High level of uncertainty in December, argument could be made in favor of caution: Fed Chair Powell

Labor Market Assessment - The rationale for cutting interest rates is linked to potential downside risks in the labor market [1] - Stabilizing or strengthening labor market data would influence decisions on future interest rate cuts [2] - Current data, including initial claims and job openings, suggests a gradual cooling in the labor market [4] - A prolonged shutdown hindering data collection could impact the committee's ability to assess the labor market and make policy decisions [4] Economic Data and Uncertainty - The committee considers labor market, inflation, and economic activity data, along with the Beige Book [5] - A significant economic change would likely be detected despite data limitations [5] - High uncertainty could lead to a cautious approach regarding December's decisions [6]