As data went dark from the government shutdown, the Federal Reserve’s inflation hawks pushed to pause rate cuts at a contentious October meeting. The divide might not end soon.

The recent government shutdown has led to a significant lack of economic data, creating uncertainty for policymakers. In this context, inflation hawks within the Federal Reserve pushed to pause interest rate cuts during an October meeting, reflecting a deepening divide among officials regarding the best approach to manage inflation and economic growth. As the Federal Reserve grapples with these challenges, the implications of the shutdown and the resulting data blackout may hinder their ability to make informed decisions, suggesting that this internal conflict may not resolve quickly. The ongoing debate highlights the complexities of navigating monetary policy in an unpredictable economic environment.