US Federal shutdown cuts off economic data! How will it impact policymakers, investors?

The Fed will remain open no matter how long the shutdown lasts, because it funds itself from earnings on the government bonds and other securities it owns.

The government shutdown that began Wednesday is set to deprive critical economic data from policymakers and investors at a time of heightened uncertainty over the US economy’s trajectory.

The impact will be immediate, with the release of the monthly jobs report, scheduled for Friday, expected to be delayed. Likewise, the weekly unemployment claims report, an indicator of layoffs typically published on Thursdays, will also be postponed.

While a brief shutdown may cause only limited disruption, an extended delay in data releases could create significant challenges, especially for the Federal Reserve as it formulates policy decisions.