U.S. Government Shutdown May Influence Federal Reserve's December Rate Decision

According to Odaily, analysts Simon Ballard and Al Maha Al Nuaimi from First Abu Dhabi Bank have indicated that the U.S. government shutdown and the disruption of official economic data releases have complicated the economic outlook. This uncertainty could lead the Federal Reserve to pause interest rate cuts next month. The analysts suggest that the uncertainty caused by the shutdown might strengthen the Federal Reserve's rationale for pausing in December, regardless of any opposition from board member Milan. Federal Reserve Chair Jerome Powell, following a 25 basis point rate cut last week, also hinted that a December rate cut is not guaranteed.