The possibility of government shutdowns in the US puts important economic data at risk. According to the U.S. Department of Labor’s previously released operational contingency plan, the employment report for September, scheduled for release next week, will be postponed if the federal government is shut down.
The scope of the government closure remains unknown. Many agencies, including the Bureau of Labor Statistics (BLS), which prepares employment reports, have yet to announce updated emergency plans. If Congress fails to approve the budget by next Tuesday, these agencies will be forced to halt operations based on previous plans.
According to the Ministry of Labor’s renewal plan last March, all data collection and release processes will be suspended during the government closure. This could delay the release of BLS data.
In such a scenario, the US Federal Reserve will be deprived of critical employment and inflation data ahead of the October 28-29 interest rate meeting. Experts believe this can exacerbate risk by increasing the uncertainty surrounding the Fed’s monetary policy decisions.
*This is not investment advice.
