Without going any further, on Wednesday the Federal Reserve (Fed, central bank) announced a quarter-point rate cut despite lacking key information. The shutdown, which entered its 30th day on Thursday, has left the world’s largest economy without data on employment, trade or retail sales.
Republicans and Democrats appear to be at an impasse in negotiations to reach a federal government funding deal. Both parties blame each other for the situation, with no solution in sight.
In the absence of official data on gross domestic product (GDP), Dow Jones Newswires and The Wall Street Journal published the markets’ expectation: that GDP grew 2.8% year-on-year in the third quarter of the year.
If this forecast is confirmed, it would represent a setback with respect to the 3.8% growth of the second quarter.
Experts warn of reduced investment and hiring: “This is the time of year when most organizations are finalizing their 2026 budgets,” says Heather Long, chief economist at Navy Federal Credit Union.
The Fed announced the second quarter-point rate cut of 2025 on Wednesday, in an attempt to stimulate the labor market and facilitate access to credit. “We continue to face risks,” said Fed Chairman Jerome Powell.
