Abu Dhabi First Bank: The uncertain future of the US government shutdown may indicate that the Federal Reserve will remain inactive in December.

Simon Ballard and Almaha Al Nuaimi from the First Abu Dhabi Bank stated in a report that the U.S. government shutdown and the halt in official economic data publication are making the outlook more complex and uncertain, which could lead to the Federal Reserve pausing its rate cuts next month. These analysts believe that regardless of how high the opposition against Chairman Jerome Powell may be, the uncertainty caused by the government shutdown could help reinforce the Fed's decision to stand pat in December. Federal Reserve Chairman Jerome Powell hinted at a press conference last week that after a 25 basis point rate cut that met expectations, another rate cut in December is not a certainty.