The Fed has cut interest rates again by 25 basis points, but the lack of data makes the outlook even more uncertain.

Jin10 data reported on October 30th that the Fed has announced another interest rate cut, continuing efforts to prevent the recent slowdown in hiring from evolving into a more serious problem. The latest 25 basis point cut will bring the Fed's benchmark interest rate down to a range of 3.75% to 4%, the lowest level in three years, below the peak of about 5.4% that the Fed maintained for much of last year. However, the ‘easiest part’ of reversing the aggressive rate hike cycle may have already ended. As officials debate the extent of further rate cuts, this tricky task has become even more complicated due to data interruptions caused by the government shutdown. Former Fed senior advisor William English stated that the lack of timely and comprehensive data means “they have not learned much new since September, which makes their speculation closer to the position in September, but the range of uncertainty around that position has widened.”