"The federal fiscal year ends on Tuesday, and if there is no deal for more funding, then much of the government's vast bureaucracy will shut down right after midnight on Wednesday. Critical functions like the military will continue, but a shutdown that lasts longer than a few days would affect the monthly jobs report, which is due on Friday and is produced by the Bureau of Labor Statistics. A Labor Department contingency plan obtained by Bloomberg shows all data collections and scheduled releases would cease."
"Up-to-date employment data has become extra crucial to investors and the Federal Reserve, especially after policymakers resumed rate cuts earlier this month on signs that the labor market is weakening. But the continued stickiness of inflation has cast some doubt on how aggressively or cautiously the central bank goes from here. Future rate cuts-which Wall Street is expecting and President Donald Trump is demanding-will hinge on whether the job market merits more attention from the Fed than the inflation side of its dual mandate."
The federal fiscal year ends on Tuesday; without a funding deal much of the government will shut down after midnight Wednesday. Critical functions like the military would continue, but a prolonged shutdown would stop Bureau of Labor Statistics data collections and scheduled releases, including the monthly jobs report due Friday. A Labor Department contingency plan indicates data releases would cease. Up-to-date employment data is crucial to investors and the Federal Reserve as policymakers resume rate cuts amid signs of a weakening labor market. Sticky inflation complicates the Fed's path. Economists forecast a modest payroll gain of about 45,000 and a 4.3% unemployment rate.
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