Saturday, October 5, 2013

US policy makers fear flying blind

A lengthy government shutdown could paralyse US Federal Reserve policy making - including a crucial decision on when to slow its asset purchases - and create ripple effects that make economic data less useful for months or even years to come. US policy makers fear a continued government shutdown could seriously degrade the quality of economic data and leave them without reliable information until January. Although the first impact of the shutdown was a delay in jobs numbers for September, which were due for release on Friday, policy makers are more concerned about the integrity of October's data. Without a prior month for comparison, November data would be hard to compile and interpret, so December data - released in January - would be the next clear reading on how the economy is performing.

Source: http://www.ft.com/cms/s/0/3afd268c-2cef-11e3-8281-00144feab7de.html?ftcamp=published_links%252Frss%252Fglobal-economy%252Ffeed%252F%252Fproduct

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