An analyst suggests that a potential US government shutdown could lead to a further interest rate cut by the Federal Reserve in December. The ongoing budget impasse might influence the Federal Reserve’s monetary policy decisions. If the shutdown occurs, it could create economic uncertainty, prompting the Fed to consider easing rates to support growth. This scenario may lead to a reassessment of the current interest rate strategy as the Fed evaluates the impact of government operations on the economy. The analyst’s observations highlight the interconnectedness of fiscal policy and monetary policy, particularly during times of economic stress.
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Last updated on November 10th, 2025 at 11:56 pm
