Fed May Pause Rate Cuts in December Amid Government Shutdown Data Disruption

The Federal Reserve could halt its rate reduction cycle next month as a U.S. government shutdown disrupts official economic data releases, First Abu Dhabi Bank analysts Simon Ballard and Almaha Alnuaimi said on Nov. 6. The analysts noted the shutdown uncertainty may strengthen the case for a December pause, despite objections from board member Michelle Bowman. Fed Chair Jerome Powell indicated following last week's 25 basis point cut that a December reduction is not guaranteed, Jin10 reports.