Fed's Policy Dilemma Amid Data Scarcity and Economic Uncertainty

Federal Reserve Chair Jerome Powell highlighted a policy divide within the U.S. central bank, exacerbated by a lack of federal data due to a government shutdown. The recent interest rate cut aims to counteract potential job market weakening. However, future rate decisions remain uncertain amid differing policy views and limited economic data.

The Federal Reserve, led by Chair Jerome Powell, faces a policy divide as it grapples with limited data due to a prolonged government shutdown, potentially stalling further interest rate cuts this year.

Despite a recent rate cut intended to mitigate job market risks, conflicting views among Fed officials and the dearth of government data complicate future monetary policy decisions.

Financial markets responded cautiously, reflecting uncertainty over upcoming meetings as the central bank navigates economic growth challenges and inflation dynamics under strained conditions.

(With inputs from agencies.)