After the US Government Shutdown, a Wave of "Low-Quality" Data Could Hit the Market
BlockBeats News, November 11th, the direction of the U.S. government shutdown is becoming clear, indicating that Wall Street may soon see a wave of key economic reports that have been postponed for over a month. The first to appear will be the September employment data. Morgan Stanley economists estimate that the September employment report could be released as early as this Friday, but more likely at the beginning of next week.
Furthermore, in the worst-case scenario, the October Consumer Price Index (CPI), Producer Price Index (PPI), and Personal Consumption Expenditures (PCE) Price Index may not be released at all. The PCE Price Index is the Fed's favorite inflation measure.
Another possibility is that the U.S. Bureau of Labor Statistics will attempt to extrapolate the month's inflation trend. However, economists say the quality of the report will be greatly compromised, and the timing of the release may be so late as to be almost meaningless.
The delayed release of the September employment report and the absence of the October inflation report will leave the Fed lacking sufficient decision-making basis when discussing whether to cut interest rates for a third consecutive meeting. (Jin10)
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