Federal Reserve's Waller: Government Shutdown Makes Future Policy Path Even More Uncertain

BlockBeats News, October 16: On October 16, the Golden Ten Data reported that Federal Reserve Governor Waller stated that he supports further rate cuts later this month. However, due to the government still being in a shutdown state and the lack of official economic data, there remains significant uncertainty about the subsequent policy path. Waller mentioned that the economic outlook still presents conflicting signals, with economic growth appearing to remain strong but the labor market noticeably tightening for workers.

Waller pointed out that "given our uncertainty about how the data will evolve, the Fed needs to proceed cautiously in adjusting policy rates to avoid making costly mistakes that are hard to correct." He also noted that the timing of rate cuts and the policy decisions after October are still full of uncertainty. "The policy path after October will depend on how the conflicting signals between economic activity and labor market data are resolved, as well as the trend in inflation expectations." He added that the government shutdown has made the Fed's decision-making environment more complex. The shutdown itself may cause temporary economic fluctuations, but once reopened, the economy will quickly recover. However, if the shutdown lasts too long, it will weaken the potential for economic growth and slow down the recovery process. (Golden Ten)