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Interest rate frustration in the USA: Fed is flying blind without labor market data!
On October 29, 2025, the Federal Reserve will cut the key interest rate without current labor market data. Shutdown in Washington exacerbates uncertainty.
Interest rate frustration in the USA: Fed is flying blind without labor market data!
There are turbulent developments in the current economic landscape in the USA. The ongoing shutdown in Washington not only has political consequences, but also far-reaching effects on economic data. The statistics on the labor market, which have no longer been collected since October 1st, are particularly affected. This means that the Federal Reserve, led by Jerome Powell, has to act without reliable information. Uncertainties are increasing as interest rate reduction measures cannot be based on the latest data. The Süddeutsche Zeitung reports that the Fed now has to make decisions blindly, while the statistics authorities have stopped their work due to the shutdown.
What's next for the Federal Reserve's monetary policy strategy? After interest rates have been cut for the second time, one might think that the stock markets have hopes of stabilizing soon. However, the question remains as to how sustainable these measures are without current labor market data. Loud Stock Exchange Global There is some hope for weak jobs data, which could potentially prompt the Fed to take further interest rate steps. But without reliable statistics, this is a shaky situation.
The geopolitical dimension
To better understand the bigger picture, let's take a look at the US geopolitical situation. As the third largest country in the world with over 340 million inhabitants, the USA not only has a strong economy, but also a significant influence on world politics. Information from Wikipedia show that the country is located in North America, is a federal presidential democracy and has one of the largest economies in the world, with an estimated GDP of around $30.6 trillion in 2025. These dimensions highlight the importance of ensuring that economic decisions are well coordinated to ensure stability.
The fact that the U.S. faces a variety of challenges, from political tensions to economic uncertainties, reinforces the importance of a well-functioning labor market. The Federal Reserve's reliance on outdated data is worrisome because if basic statistics are missing, the accuracy of fiscal policy is in jeopardy.
Finally, we can only hope that the shutdown will be ended soon and the statistics will be back on the table soon. In the dynamic world of financial markets, every minute counts, and without up-to-date information it is difficult to maintain a reliable course. The Federal Reserve's next steps will be critical to meeting the challenges in the coming weeks and months.