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Fed's Waller: The US government shutdown makes the subsequent policy path more uncertain
2025-10-16 13:40

Odaily Planet Daily reported that Federal Reserve Governor Waller said he supports further interest rate cuts later this month, but because the government is still in shutdown and there is a lack of official economic data, there is still great uncertainty about the policy path thereafter. Waller said that there are still contradictory signals in the economic outlook. Economic growth seems to be still strong, but the labor market is obviously tightening for workers. Waller pointed out that "because we don't know how the data will evolve, the Fed needs to be cautious when adjusting the policy interest rate to avoid making costly mistakes that are difficult to correct." He also pointed out that the specific timing of the interest rate cut and policy decisions after October are still full of uncertainty. "The policy path after October will depend on how the contradiction between economic activity and labor market data is resolved, as well as the trend of inflation expectations." He added that the government shutdown has made the Fed's decision-making environment more complicated. The government shutdown itself may bring short-term economic fluctuations. Once it reopens, the economy will recover quickly. But if the shutdown lasts too long, it will weaken the potential for economic growth and delay the recovery process (Jinshi)