A U.S. government shutdown could lead the Federal Reserve to pause rate cuts in December.
According to ChainCatcher, citing Golden Ten Data, Simon Ballard and Al Maha Al Nuaimi from First Abu Dhabi Bank stated that the U.S. government shutdown and the interruption of official economic data releases have made the outlook more complex and uncertain, which could lead the Federal Reserve to pause interest rate cuts in December. Analysts pointed out that the uncertainty brought by the government shutdown may strengthen the Fed's rationale for "hitting the pause button" in December.
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